Oh Oh Canada! Consumer Debt Soars

 The average household in Canada now has just 63 cents of disposable income for every dollar of debt, according to Statistics Canada. That’s the highest ratio of debt to income ever recorded in Canada, and more inflated than the levels witnessed in the U.S. and Britain before their housing market collapses just a few years back.

Worrying indeed. Good news is that Canadians have more equity in their homes then the Americans ever did but could easily see that equity evaporate if speculators and over leveraged home owners start a selling off properties to control their debt levels. This could turn a soft-landing in housing prices in to a real estate crash especially in the “hot” Toronto condo market.

Read the full article on the Globe and Mail website.