It noted that in the five years leading up to 2007, the
ratio of household debt to income rose by an average of 39 % across advanced economies, to 138 %.
In comparison, the next largest
category of household debt after mortgage debt and student loans at the end of 2013 was auto loans.
For several years, policy - makers have been introducing new regulations, such as restrictions on mortgage credit, to curb the build -
up of household debt.
In recent years we have given a lot of attention to the
growth of household debt and its possible effects on the macro economy.
Unfortunately, we have no detailed information on the distribution
of household debt for investment housing.
In general, the respondents expect the
quality of household debt to strengthen with residential mortgages continuing to report the greatest improvements in loan quality.
Furthermore, the overview it provides is limited to outstanding balances and lacks important information on the origination, repayment, and delinquency
status of household debt.
However, this is changing, and the increase in the level
of household debt over the past decade is a major shift, with significant knock - on implications for consumption.
But the central bank has argued that the
likelihood of household debt levels becoming a serious problem remains low and the situation is likely to improve once the economy starts to recover.
Other categories of debt considered in this
survey of household debt include home equity loans, auto loans, credit card debt and student loans.
While the
ratio of household debt to income has increased sharply, much of this debt is «carried» by rising real estate value.
Student loans are the second largest
source of household debt, after mortgages, and many of those loans are privately owned.
An additional consideration in this environment was the risk to the economy posed by the build -
up of household debt and the associated increases in house prices.
He says the higher rates have helped keep the
accumulation of household debt lower than it otherwise would have been had Canada continued with government belt - tightening approaches of the past.
In December 2015, Poloz went as far as to warn the nation that our ever - increasing
mountain of household debt was «the most - important vulnerability to [Canada's] financial system.»
From nationally known real estate analysis firm John Burns Real Estate Consulting comes a warning about tomorrow's housing market: it seems that there is more student loan debt on the books now than the total credit card debt owed by Americans today COMBINED with the total of all the other
kinds of household debt (if you don't count home loans or mortgages in the tally).
According to the Canadian Bankers Association, 69 per
cent of household debt in Canada is made up of residential mortgage debt, while 18 per cent comes from lines of credit and five per cent is credit card debt.
Using a new dataset on various
types of household debt, including student loans, research from the Federal Reserve Bank of New York found that total outstanding educational debt nearly tripled from 2004 to 2012, growing from $ 364 billion to $ 966 billion.
Record levels
of household debt add pressure to the financial strain of separation and divorce, says Toronto family lawyer Katherine Robinson.
Here are three off the top of my head: Record levels
of household debt threaten future spending, too many of our companies need a weaker currency to be competitive, and international energy companies are giving up on Canada as a place to invest.
He included original research that suggests a looser fiscal policy after 2010 may have resulted in a lower level
of household debt today.
Yet, as a country, we are probably more vulnerable than we were a decade ago because we failed to take seriously the most important lesson of the crisis: the dangers of housing mania and the
perils of household debt.
RBC economist Laura Cooper said in a note to clients that the most likely scenario is that as housing moderates, the
pace of household debt accumulation will also ease.
While providing a useful aggregate
overview of household debt, the Flow of Funds release defines the household sector as a residual sector that also includes nonprofit organizations, such as schools, hospitals and churches, as well as hedge funds and private equity funds.
Empirical research shows that a
buildup of household debt in the economy makes a financial crisis more probable, so we wanted to understand the costs and benefits of leaning against financial imbalances through tighter monetary policy.
Meanwhile, delinquency rates for each form
of household debt declined, with about 8.1 percent of outstanding debt in some stage of delinquency, compared with 8.6 percent the previous quarter.
And thirdly, of course, higher leverage means that monetary policy's impact via its effect on the behaviour of borrowers will be bigger than in the past — especially in a country like Australia where the
majority of household debt is at floating rates.
«Major declines in house prices and the continuing high level of unemployment are reflected in the various
measures of household debt and credit.
The
bulk of household debt in Australia tends to be owed by those with the highest incomes who are most able to service their loans (Graph 11).
Phrases with «of household debt»