Canadians Have Amassed $1.8T in Household Debt: Here's How

$1.8 TRILLION IN HOUSEHOLD DEBT:
WHERE IT ALL COMES FROM
Source: "Canadian Lending Market Scan",
a D+H summary of 20 current Canadian financial reports (2015)
With different stages of life come different income levels and financing requirements. From student loans to
home mortgages, Canadians have amassed $1.8 trillion in total household debt - double what it was a decade
ago. To understand how we got here, let's take a look at Canadian attitudes towards debt, and how borrowing
needs change throughout a typical lifetime.
U
NIVERSITY
AGE
20S
INCOME
STUDENT LOANS
CAR PAYMENTS
FIRST CREDIT CARD
INCOME
BORROWING
INCREASES
BORROWING BEGINS
BORROWING INCREASES
MORTGAGE
CREDIT CARDS
HIGHER CAR PAYMENTS
WERE OPTIMISTIC ABOUT
THE 2015 ECONOMY
ENTRY-LEVEL,
BUT INCREASING
68%
ARE COMFORTABLE WITH
THE SIZE OF THEIR
MORTGAGE
73%
AGE
30S
AGE
40S
AGE
50S
82%
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$
$$$$$$$$$$$
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NATIONAL OPINION ON DEBT
INCOME
LARGER MORTGAGE
COSTS OF RAISING CHILDREN
LINES OF CREDIT
CAR PAYMENTS
OF CANADIANS AGREE
MORTGAGES ARE
‘GOOD DEBT’
84%
$20,891
163.3%
IN DEBT
TRILLION
1.8$
SAY REAL ESTATE IS A GOOD
LONG-TERM INVESTMENT
AVERAGE DEBT PER
HOUSEHOLD ( NOT INCLUDING MORTGAGE )
1.1% RATE OF LOAN DELINQUENCY
( AND DECLINING )
HOUSEHOLD DEBT AS A
PERCENTAGE OF DISPOSABLE
INCOME
0.28%
UNIVERSITY
CANADIAN
INCOME
KIDS' POST-
SECONDARY COSTS
MORTGAGE PAID
OFF (FOR SOME)
KEY FACTS ON CANADIAN DEBT
AGE
60
INCOME
VEHICLE SALES REMAIN ROBUST
HOUSING MARKET IS A SUCCESS STORY DESPITE SALES SLOWING
(PRICES REMAIN STRONG)
LOAN DELINQUENCY AND MORTGAGE ARREARS STABLE, EVEN DECLINING
TODAY'S LOW INTEREST RATES ARE POTENTIALLY CREATING A HOUSING
BUBBLE, WITH INFLATED HOME VALUES. CANADIANS MAY NOT BE ABLE TO
AFFORD THEIR HOMES AT TOMORROW'S EXPECTED HIGHER INTEREST RATES
GLOBAL UNCERTAINTIES (ECONOMIC AND GEOPOLITICAL) ARE AFFECTING
EXPORTS AND RESULTING IN SOFT JOBS GROWTH
LOW OIL PRICES ARE AN OVERALL NEGATIVE FOR CANADA
MORTGAGE-FREE,
DEBT-FREE
(HOPEFULLY)
HELP WITH KIDS'
DOWNPAYMENT
+
POSITIVES
UNCERTAINTIES
INCREASING
INCREASING
EARNING
POWER PEAKING
DEPENDS ON
RETIREMENT
SAVINGS
BORROWING
REDUCES
MORTGAGES
70%
OF TOTAL DEBT LOAD
75%
HELD BY BIG BANKS
& DESJARDINS
58%
LINES OF CREDIT
21%
AUTO
17%
CREDIT CARD
3%
OTHER
1%
STUDENT LOANS
80%
HELD BY BIG BANKS & DESJARDINS
PERSONAL LOANS
BORROWING
DECREASES
12% OF CANADIANS HOLD
OF CANADIANS 65+ ARE DEBT-FREE
( VS. 39% FIVE YEARS AGO )
OF THE NATIONAL HOUSEHOLD
DEBT
OF MORTGAGES ARE IN
ARREARS
43%
33%
BASED ON AN ONLINE SURVEY FROM 2,000 CANADIANS OF ALL AGES COMPILED IN OCTOBER 2014
THE NATIONAL PICTURE
SINCE 2008, CANADA'S ECONOMY HAS BEEN RESILIENT BUT IS NOW SLOWING CONSIDERABLY, CHALLENGED
BY MANY DIFFERENT HEADWINDS. ALTHOUGH HOUSEHOLD DEBT GROWTH HAS SLOWED, MANY CONSIDER
THE CURRENT LEVEL UNSUSTAINABLE AND BELIEVE IT COULD FURTHER DAMPEN ECONOMIC GROWTH.

Canadians Have Amassed $1.8T in Household Debt: Here's How

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