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Canadians keep taking on more debt even as they get poorer, a new Statistics Canada report shows Average household debt in Canada hit a new record high of almost 153 per cent to disposable income in the third quarter, a sizable jump from 150.7 per cent the previous quarter, the agency reported Tuesday. As well, household net worth declined by 2.1 per cent to $180,100 from $184,700, the sharpest drop in almost three years as the value of pensions and stock investments declined. The report came a day after Bank of Canada governor Mark Carney again warned about the dangers of household debt poses to the economy going forward. Canadians are more indebted now than the Americans and British, Carney noted, saying that they need to move to bring debt accumulation in line with income growth, which is modest. Debt rose at about twice the pace of income during the quarter. For the rest of the story… Industry News - Canadian households still taking on more debt: StatsCan - Article

John Greenwood Dec 8, 2011 – 12:01 PM ET The Bank of Canada is warning that conditions in the global financial system have “deteriorated significantly” since the summer because of the worsening European debt crisis and weaker world-wide economic outlook. Despite the relative health of the domestic banking system, the rise in negative pressures worldwide will likely have a “considerable impact” in this country, the central bank said in the latest edition of its biannual Financial System Review. In its starkest warning since the beginning of the turmoil, it said stability of the Canadian banking system faces a “very high risk” from the turmoil in Europe, which it deems by far the most serious threat. The comments come the same day as leaders of European countries are set to gather to hammer out a deal on revisions to the eurozone treaty aimed at avoiding a potential collapse of the currency region. According to the Bank of Canada, the risks have “increased markedly” since June.

The Bank of Canada met yesterday and decided to maintain its target for the overnight rate at 1% as anticipated. In turn, prime rate will remain at 3.00% http://www.bankofcanada.ca/monetary-policy-introduction/key-interest-rate/ www.christinebuemann.com

OTTAWA — Canadians are taking on less mortgage debt, slowing a trend that had top government officials worried about the state of consumers' household finances. The Canadian Mortgage and Housing Corp. said Tuesday in its third-quarter report that the growth of mortgage loans has slowed down to an average of just under $160,000. That reflects tougher lending rules imposed by Ottawa and a slowing economy, which has put downward pressure on house prices. The agency also noted that mortgage insurance bought by homeowners facing high-ratio debts fell by about 10 per cent, "The level of household debt remains a concern but there are encouraging signals," CMHC said. A weaker economy has made consumers more cautious and less likely to take on higher personal loans, lines of credit, car loans and credit card debt. A slowdown in mortgage debt also suggests Canadians are putting more money down on a house and avoiding high-risk mortgages. CMHC noted that there was a drastic s