It shows the breakdown of impact, from an unemployed 23 - year - old who loses $ 47 a week or 18
per cent of their disposable income to the $ 24 per week, or less than 1 per cent of disposable income, paid through the deficit levy by an individual on three times the average wage — close to $ 250,000 by 2016 — 17.
It's said that the average driver spends 5.3
per cent of their disposable income on auto insurance in Ontario.
The total amount of credit market debt — which includes mortgages, non-mortgage loans and consumer credit — held by Canadian households increased to 162.6
per cent of disposable income during the quarter, from a revised 161.5 per cent in the previous quarter.
But the level of household debt continues to rise, hitting 171.1
per cent of disposable income in the third quarter.
In the fall, Canadian household debt reached 165
per cent of disposable income, and all signs point to that number rising in 2016.
Right now, the average Canadian household spends about 14
per cent of its disposable income to pay down debt, including mortgage principal and interest.
Households, in turn, have today levels of financial burden in line with those observed in other European countries (25
per cent of disposable income in Spain, versus 28 per cent in France and 24 per cent in Germany).
PriceWaterhouseCoopers found indebted Britons are now paying 19
per cent of their disposable income on debt repayments.
Our estimate is that households currently pay about 2 1/2 per cent of income in required principal repayment, which brings their total debt servicing to 10
per cent of disposable income.
Taking these facts into account, and allowing for the fact that households with debt have, on average, incomes about 30 per cent higher than the average for all households, interest and principal repayments probably account for something like 20
per cent of disposable income among those households who have debt.
The reason for their frustration is Poloz's unwillingness to raise interest rates to slow the accumulation of household debt, which now is about 170
per cent of disposable income.
Consequently, the household debt - servicing ratio reached 9.4
per cent of disposable income (Graph 26).
Moreover, in the September quarter, the expansion in housing - secured credit exceeded household dwelling investment by around 8
per cent of disposable income.
Not exact matches
Meanwhile, the total household debt service ratio, measured as total obligated payments
of principal and interest as a proportion
of household
disposable income for both mortgage and non-mortgage debt, remained flat at 13.8
per cent in the fourth quarter.
Statistics Canada said Thursday household credit market debt as a proportion
of household
disposable income was 170.4
per cent in the fourth quarter.
As a share
of total household sector
disposable income, the cash flow effect in this scenario is estimated be less than 0.2
per cent on average
per annum over each
of the next three years (Graph 7).
Debt payments now represent about 14
per cent of household
disposable income, the highest share in three years.
Growth in household
disposable income picked up steadily over the past year, driven by solid employment growth, to be running at just under 6
per cent over the year to the June quarter, the highest rate
of increase for almost three years.
The tightening in monetary policy has, however, resulted in a rise in the interest payments
of the household sector from around 6
per cent of household
disposable income in the first half
of 1999, to around 7 1/4
per cent in the March quarter (Graph 15).
Statistics Canada said household credit market debt as a proportion
of household
disposable income increased to 167.8
per cent, up from 166.6
per cent in the first quarter.
The ongoing accumulation
of household debt has led to a further increase in the debt - servicing ratio; interest payments as a proportion
of disposable income rose to 9.3
per cent in the September quarter (Graph 23), and are expected to rise further.
Overall, the ratio
of household debt to the
disposable income of households (excluding unincorporated enterprises) has risen by 12 percentage points over the past two years to 94
per cent (Graph 16).
The ratio
of household sector interest payments to
disposable income has fallen steadily over the past year and is now below 6
per cent.
The OECD concluded earlier this month that, nationally, Canada's housing market is over-valued as much as 30
per cent, based on the ratio
of house prices to
disposable income, and up to 60
per cent if the comparison is to the historical value
of rent.
The debt - servicing ratio reached 7.6
per cent of household
disposable income in the March quarter (Graph 22).
This has encouraged housing equity withdrawal, which amounted to 6
per cent of household
disposable income in the June quarter (Graph 10).
Revised data now suggest that the debt - servicing ratio reached 8.7
per cent of household
disposable income in the September quarter, and it is likely to have surpassed its late - 1980s peak in the December quarter (Graph 27; see «Box B» for further discussion
of the debt - servicing ratio).
The governor noted in his latest speech that the debt - service ratio, or the amount we owe as percentage
of our
disposable income, has held steady at around 5
per cent since the early 1990s.
In the June quarter, the overall rise in housing - secured credit exceeded dwelling investment by the equivalent
of 8
per cent of household
disposable income, which is almost twice the average magnitude
of housing equity withdrawal seen over the past two years (Graph 28).
This will hit the poorest by far the hardest: three
per cent inflation would see the poorest lose 3.3 %
of their
disposable income, compared with 1.6 % for the best - off.
Statistics Canada said Wednesday the ratio
of household credit market debt to adjusted
disposable income crept up to 166.9
per cent in the third quarter, up from 166.4
per cent in the second quarter.
Canadian consumer debt to personal
disposable income has soared to 167
per cent — an all - time high, made more problematic by the fact that home equity lines
of credit (HELOC) comprised much
of the increase.
The ratio
of household debt - to -
disposable income reached the highest on record in the third quarter, at 148.1
per cent, Statistics Canada said Monday, a 6.7
per cent rise in Canadian household obligations from a year ago.
The household debt service ratio, the obligated payments
of principal and interest as a proportion
of disposable income, was 13.8
per cent in the fourth quarter, compared with 13.5
per cent in the third quarter.
Meanwhile, the debt service ratio — the amount
of interest paid on mortgage and non-mortgage debt as a proportion
of disposable income — declined to 6.8
per cent, an «all - time low,» according to Statistics Canada.
In the third quarter
of 2017, the national household debt - to -
disposable income ratio reached a record 171
per cent.
According to the article, which reviewed a recent Statistics Canada report, «the amount
of household credit market debt rose to 167.3
per cent of adjusted household
disposable income in the fourth quarter, up from 166.8
per cent in the third quarter.»
The most encouraging news was that households accumulated debt in the fourth quarter
of last year at the slowest annualized pace since 2001, pushing the much - watched debt to
disposable income ratio down two - tenths
of a point to 164
per cent.
Statistics Canada said Tuesday the debt - to -
disposable income ratio was 165.3
per cent for the first three months
of 2016, down from 165.4
per cent in the fourth quarter
of last year.
The average
disposable income of Canadians between the ages
of 50 and 54 is now 64
per cent higher than that
of 25 - to 29 - year - olds, the report found.
In the second quarter
of this year, for instance, debt grew by 2
per cent while
disposable incomes improved by just 0.5
per cent.