Household debt in Canada is seen by some as unsustainably high and a source of vulnerability for the financial system. But the international evidence suggests that Canadian household leverage and home prices are not abnormal. Drawing on Statistics Canada research to analyse the factors entering into household debt, and on comparisons with other countries, we estimate that given Canada’s fundamentals, the ratio of household debt to disposable income is relatively conservative.
** I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial **