B.C. leads the country in household debt - MoneySense

B.C. leads the country in household debt

High cost of homeownership to blame: report.

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Households in British Columbia are most vulnerable to a sudden economic shock such as falling house prices, swift interest rate hikes or a surging jobless rate, followed by those in Ontario and Alberta, according to a Toronto-Dominion Bank report.

Manitoba households are best positioned for such occurrences due to relatively low debt loads, it noted.

Part of the reason for B.C.’s high debt load is the high cost of owning a home in that province, illustrated by its negative average savings rate—the only one in the country.

However, the report’s authors point out that a crisis isn’t in store for any one region, and that the pace of household debt growth should slow over time.

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