Canada leads the world in household debt.

1. HOUSEHOLD DEBT
– CANADA –
DECEMBER 2017
BY: PAUL YOUNG CPA, CGA
DATE: DECEMBER 16, 2017

2. SUMMARY
• Household debt is becoming is becoming a big risks for government. If people are too
indebted then this could impact consumer spending as well as exposed more people
seeking creditor protection.

3. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

4. AGENDA
• Canada and IS Debt-to-income Ratios
• Canada Debt Service Ratio
• Blog – Household Debt
• Canada leads the world in household debt
• Skyrocketing household debt

5. CANADA AND IS DEBT-TO-INCOME RATIOS
Source - http://www.rbc.com/economics/daily-economic-update/NBSA_Dec2017.pdf

6. CANADA AND IS DEBT-TO-INCOME RATIOS
Source - http://www.rbc.com/economics/daily-economic-update/NBSA_Dec2017.pdf

7. BLOG – HOUSEHOLD DEBT
• Liberal Party of Canada said during the 2015 election that Harper was at fault for the record levels of
household debt - https://www.liberal.ca/remarks-liberal-party-canada-leader-justin-trudeau-carp/
• “That’s because middle class Canadians haven’t had a decent raise in a generation. Over the last 30 years,
Canada’s economy has more than doubled in size. But middle class family incomes? They’ve only risen by
about 15% since the early 1980s.
• At the same time, Canadian families are struggling under mounting household debt, and we’re not saving
what we need to – for our kids’ education or for our retirement. CIBC estimates that the average 35-year-
old now puts aside less than half of what their parents did at the same age. – Justin Trudeau, October 24,
2014.
• The latest data in August 2017 shows that household debt hit all-time high in August 2017 -
https://www.slideshare.net/paulyoungcga/housing-market-canada-august-2017 or
http://www.bnn.ca/canada-household-debt-to-income-ratio-climbs-to-record-high-in-second-quarter-
1.857418. Housing prices have come down over the past few months. The average price for August is almost
equal to price in January 2017.
• Household income in Ontario and PQ has been nearly flat for 10+ years.
https://www.slideshare.net/paulyoungcga/government-policy-household-income-canada-2016
• All levels of government along with the private sector have a role in supporting the housing sector. It is not
one policy that will fix the systemic issues.

8. CANADA LEADS WORLD IN HOUSEHOLD
DEBT

9. CANADA HOUSEHOLD DEBT/WORLD

10. SKYROCKETING HOUSEHOLD DEBT