Canadians’ household debt surges to new record as borrowing continues

Canadian household debt soared to a record high in the second quarter of this year as rock-bottom interest rates continued to underpin heavy borrowing.The ratio of debt to disposable income jumped to 167.6 per cent, higher than the first quarter’s 165.3 per cent and eclipsing last year’s record, according to Statistics Canada’s national balance sheet report released on Thursday.

Household debt could be a lot worse: real estate analyst (BNN Video)

At the end of the second quarter, households owed $1.68 in debt for every dollar of disposable income.“Canadians love debt, and with interest rates this low, why wouldn’t they,” Leslie Preston, senior economist with Toronto-Dominion Bank, said in a note.Canada’s central bank is not expected to raise interest rates for at least another year, setting the stage for Canadians to shoulder even more debt.Ms. Preston said it may be reassuring to point out …