Read more: Equifax Canada reports latest consumer debt levels
Concurrently, Canadian households took on an additional $56.3 billion in debt, bringing the nation’s total household debt load to roughly $2.8 trillion. The household debt-to-income ratio correspondingly increased from 179.3% in Q1 to 181.7% in Q2.
Economists cautioned that this might be just the beginning when it comes to added debt, as more Canadians will be forced to borrow more expensive loans due to multiple inflationary pressures.
“Looking ahead, financial headwinds are only going to intensify, as job gains slow while interest rates continue to march higher,” said Ksenia Bushmeneva, economist at Toronto-Dominion Bank. “This is going to push debt servicing costs higher over the rest of this year and into the next one.”