Victorian’s are accumulating more debt at a rate that is ‘significantly exceeding’ the rest of Canada according to Statistics Canada.
In Victoria the debt-to-income level increased 240 per cent from 1999 to 2016, surpassing major Canadian cities like Vancouver (240 per cent) and Toronto (210 per cent), and the Canadian average (165 per cent).
The jump can be partially explained due to higher real estate values which in turn contribute to higher accumulations of mortgage debt and higher principal assets.
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The study, based on the results of the 2016 Survey of Financial Security (SFS), showed the total debt-to-income levels and the median net worth in all major areas for all income groups between 1999 and 2016.
Families living in Moncton, N.B. (106 per cent), London, Ont. (113 per cent) and Fredericton, N.B. (119 per cent) had the lowest increase across the country.
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Analyzing trends such as debt-to-income and net worth help identify potential financial vulnerabilities of specific groups in the face of economic shocks.
The same study showed the median net worth for Canadians rose from $144,500 in 1999 to $295,100 in 2016, with Toronto (121 per cent) and Vancouver (188 per cent) recording the highest increases nationally.
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