Canadians have accumulated real estate debts of $2 trillion and another $722 billion of other types of debts.
The debt-to-income ratio in Canada has increased and not for the better. If earlier the debt of Canadians was 182.6% relative to income, now 183.3. The growth is small, but in the volumes of the whole country it is quite a large amount.
According to statistics, incomes in Canada increased by 0.5 percent, but debts jumped 1.2 percent in the third quarter.
Debts in Canada are growing despite the increase in the interest rate. The rate has increased, made money more expensive, but Canadians continue to borrow. The total debt of Canadians is 2.8 trillion dollars, of which 2.07 are housing loan debts.
The increase in the interest rate also affected real estate, the value of which dropped slightly.
The total value of what Canadians own has declined. Every Canadian has $438.815 worth of valuables. For the first time since the global economic crisis, capital decreased by 8.5%.
The increase in debts will lead to the fact that next year we should expect a reduction in spending in Canada and less turnover in retail trade.