According to the Bank of Canada, Canadian household debt rose to $2.005 trillion dollars in December 2016, a year over year increase of 5.2%; accelerating even faster in December, at a rate of 5.8% annualized.
Consumer debt is now 9% higher than the total debt of all businesses in Canada. 18% higher than the national GDP, and 30% higher per capita than in the US. See: Canadian consumers set a new debt record, over $2 trillion in December 2016. Here is the chart.
“…if someone says it’s not all that bad, make sure you don’t let them give you any investment advice.
The growing levels of debt is worrisome on its own, but the acceleration is terrifying. One of the slowest months for real estate sales resulted in an acceleration of consumer debt. Canadians are borrowing record amounts of debt to pay for shelter, diverting financial resources from the rest of the economy. No one’s sure when Canada’s real estate addiction is going to end, but it won’t be pretty when it does.”