Statistics Canada has reported that the ratio of household debt to income increased in the first quarter, with debt growing faster than income.

The agency stated that the household credit market debt to disposable income ratio rose to 173.9 per cent on a seasonally adjusted basis, up from 173.5 per cent in the previous quarter.

This means that there was $1.74 in credit market debt for every dollar of household disposable income in the first quarter.

Meanwhile, the household debt service ratio, which measures total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, remained steady at 14.40 per cent.

During the first three months of the year, the pace of household credit market borrowing slowed to a seasonally adjusted $34.5 billion, down from $41.6 billion in the previous quarter.

The total seasonally adjusted stock of household credit market debt, including consumer credit, mortgage, and non-mortgage loans, increased by 1.1 per cent to $3.07 trillion in the first quarter of 2025, with mortgages making up nearly 75 per cent of the total.