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Debt Service Costs Hover At Joint Highs In Q4 [1/2]

CANADA DATA
  • Today’s Q4 balance sheet data saw household net worth bounce 1.8% to $16.4tn as bonds and equities rallied after losses in Q3, leaving net worth back above 10x disposable income.
  • The debt service ratio meanwhile held at 15.0% in Q4 after a downward revised 15.0 (initial 15.2) in Q3. Rather than pushing to new record highs, it’s instead plateaued at joint record highs seen previously in 2007 and 2019.
  • Mortgage debt servicing (8.2% of disposable income) is the significant driver of the recent increase, with non-mortgage debt servicing low by recent standards.

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