Household debt hits a new high

Although the rate of credit accumulation is slowing, household debt in Canada hits new high in the fourth quarter of 2012, lending more evidence that actions taken by the Bank of Canada are stabilzing the housing market.

STATSCAN has calculated that Canadian households owed an average of $164.97 for every $100 of after tax income, making it a slight increase from the third quarter in 2012.  This is also only a few points shy of what household debt levels were in the US before the real estate market collpase and the reason behind the new mortgage rule changes by the Government last July.

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