Highest household debt in the world: Canada ranks third

 

Canada tops countries with rising household debt, report says A new report by financial services group Desjardins says that most of the country is in debt. Canada ranks third in the list of countries with the highest household debt in the world. Canada's position is followed by Switzerland and Australia. A May 2023 report by the Canada Mortgage and Housing Corporation (CMHC) found that Canada's household debt was the highest among the G7 countries.

Desjardins says the highest-income households carry more than half of all debt in Canada. The lowest-income households carry 45 percent of household debt. This group has been hit by rising mortgage debt since 2019, the report says.

Desjardins also notes that inequality between the wealthy and the non-wealthy has increased in Canada. Higher interest rates affect income distribution. The report also says that this benefits the rich.