(Adds details from report)
OTTAWA, March 11 (Reuters) - Canadian household debt
compared to income rose to a record in the fourth quarter as
disposable income grew at a slower pace than borrowers took on
debt, data from Statistics Canada showed on Friday.
The ratio of household credit market debt to income rose to
165.4 percent in the final quarter of last year from an
upward-revised 164.5 percent in the third quarter. It was the
third quarter in a row the measure has increased.
Household credit market debt, which includes consumer
credit, mortgages and other loans, rose 1.2 percent with
mortgages making up the bulk of debt outstanding. Over 2015, the
amount of mortgages surged 6.3 percent, the strongest growth
since 2011.
Still, it remained cheap for Canadians to shoulder their
loans with the interest-only service ratio remaining around its
record low at 6.2 percent.
Years of low borrowing costs have contributed to Canadians
taking on more debt as the central bank has been forced to keep
interest rates low to support the economy. The Bank of Canada
cut interest rates twice last year.
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Graphic - Canada economic dashboard: http://graphics.thomsonreuters.com/15/sc-canada/index.html
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