Interest payments now account for 9.16% of Canadian household disposable income - the highest since 1996!
We've analyzed Canadian household debt payments (principal and interest) alongside interest payments as a percentage of household disposable income from 1990 to 2023.
Key Insights:
• Negative Mortgage Amortization Impact:
While total debt payments (principal and interest) relative to income remain at levels similar to 2019, interest payments have significantly increased. Why? Approximately 5% of mortgage holders are only covering part of their interest, making no reduction in principal!
• Crisis Levels:
Both interest and total debt payments have reached levels seen during the financial crisis in 2008.
• 1990s High Interest Levels:
Although interest payments were higher in some years prior to 1996, total debt payments were lower, primarily due to the very smaller loan amounts during those periods.
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Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.