According to Statistics Canada, in the second quarter of 2018 Canadian households now owe more, relative to their income, even as mortgage borrowing continues to decline.
The agency went on to report that as a proportion of household disposable income, credit market debit has jumped to 169.1%. Marking a continued trend of debt outpacing income.
Put another way, for every dollar of household disposable income, Canadians now owe $1.69 in credit market debt.
This is a rise from the first quarter which was at 168.3%.
Although household debt has long been considered a key vulnerability in the financial system by the Bank of Canada, the central bank has noted earlier in the year that the risk has lessened.
Even as consumer demand for credit increased, the decline of mortgages came as the housing market slowed as a result of tighter rules and rising mortgage rates.