Scotiabank Strategic Priorities and Track Record
Household Debt Comparison
In methodologically comparable terms, Canadian debt-to-income is 12% below where it peaked in the US
In the last 5 years, increases in Canadian debt-to-income ratio has slowed vs 2000-10
-
On same terms, Canada's debt-to-income is 155% vs 139% in the US
Canadian debt-to-assets ratio remains below US
-
U.S. households have incentive to pursue higher asset leverage in light of mortgage interest deductibility
Debt is a stock concept, to be financed over one's lifetime. Income is a flow concept measuring one single
year's earnings. Debt should be compared to lifetime or permanent income, or assets
Household Credit Market Debt
to Disposable Income
Household Liabilities as % of
Total Assets
180
household credit liabilities
160
as % of disposable income
140
120
100
80
60
30
25
20
Adjusted
Canadian
Adjusted US
15
Official
Canadian
90 92 94 96 98 00 02 04 06 08 10 12 14 16
Sources: Scotiabank Economics, Statistics
Canada, BEA, Federal Reserve Board.
23
10
household debt
as % of assets
US
Canada
90 92 94 96 98 00 02 04 06 08 10 12 14 16
Sources: Scotiabank Economics, Statistics
Canada, Federal Reserve Board,
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