While official figures show a technical recession for the first half of 2015, it seems Canadians were not put off from borrowing.
A report from RBC shows that the average household’s level of debt grew to a new record high.
The bank’s economist Laura Cooper estimates that Canadians now have $1.84 trillion in debt, including mortgages; up 4.9% from the first half of 2014. Home loans increased 3.2%.
While interest rates are low and there have been some income gains, Cooper’s report warns that this will not continue forever and notes that 40% of outstanding debt is held by just 12% of households.
These could become a problem as mortgage rates rise.