Canadian household debt compared with disposable income jumped to a record high in the second quarter, as borrowing grew faster than income and historical revisions boosted past debt accumulation. The ratio grew to 165.8 percent in the second quarter, while the first-quarter figure was revised to 164.2 percent from a previous 154.3 percent, Statistics Canada said today from Ottawa. Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty have said Canadians should make sure their debt loads remain affordable when interest rates eventually rise. Carney has kept his main interest rate at 1 percent for more than two years, the longest pause since the 1950s, and has said he may tighten policy as the economy moves toward full output. Today’s report made historical revisions back to 1990, which raised the debt ratio in recent years due to a higher estimate of credit market debt and reduced disposable income. The ratio of credit market debt to disposable income rose to 163.4 percent from 161.8 percent, as credit market debt grew by 1.8 percent and disposable income by 1 percent. The equity held by consumers as a percentage of real estate value was little changed at 69.2 percent in the second quarter, according to the report. National net worth rose 1.1 percent to C$6.77 trillion ($6.92 trillion) in the quarter, Statistics Canada said. To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; David Scanlan at dscanlan@bloomberg.net

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