The Canadian Statistics Authority reported today, Wednesday, that Canada has the highest level of household debt relative to disposable income, compared to other G7 countries.

The agency wrote that the 2021 census survey revealed that the debt-to-income ratio reached more than 180 percent, surpassing the United States and Germany by a large margin, with both countries recording interest rates of 100 percent.

This means that for every dollar Canadian households have in disposable income, they owe about $1.85.

In contrast, in 1980, the rate was only 66 percent.

The agency attributed the rise in Canadian debt levels to home ownership, describing housing as a "double-edged sword" – it is a major contributor to the middle class’s overall wealth while leading to an "imbalance between assets and debts."

Canadians in the middle to lower income brackets generally spent more than they saved until 2023. There was also a strong link between the saving abilities of homeowners versus renters. Mortgage holders saved more than they spent, whereas renters did not.

The agency wrote: "For the median household, real estate represents about 55 percent of its wealth, and mortgages represent most of its debt – trends that are more pronounced for middle-class or working-age households."

It also says that Canadians over age 55 own 65 percent of the total wealth in Canada, indicating "significant risks for intergenerational mobility" in the coming decades.