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Is Your Debt-to-Income Ratio Healthy? What Canada's Record Household Debt Means for You

  Introduction Canadians are carrying more debt than ever before. According to the latest data, the ratio of household credit market debt to disposable income climbed to 177.2% in Q4 — meaning that for every dollar Canadians take home after tax, they collectively owe $1.77 in debt. That number has been trending higher for years, and it's not slowing down. But what does that mean for you , personally? And more importantly — is your own debt-to-income ratio in healthy territory? Let's break it down. What Is a Debt-to-Income Ratio? Your debt-to-income ratio (DTI) is one of the most important numbers in your financial life, yet most Canadians have never calculated it. It measures how much of your income is going toward debt — and it comes in two flavours: Monthly DTI: Your total monthly debt payments divided by your gross monthly income. Total DTI: Your total outstanding debt divided by your annual income (or disposable income). Example: If you earn $6,000/month gr...
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S&P/TSX Composite Slips as U.S. Markets Surge

 

In a mixed start to the week, Canada’s main stock index, the S&P/TSX composite, dipped slightly, shedding 51.22 points to close at 21,587.88. Meanwhile, U.S. markets continued their ascent, with the Dow Jones industrial average gaining 188.94 points, reaching 38,778.10. The S&P 500 index also rose by 41.63 points to 5,473.23, and the Nasdaq composite climbed 168.14 points to 17,857.02.

Investors on both sides of the border are adjusting to recent interest rate decisions by the U.S. Federal Reserve and the Bank of Canada. While the TSX experienced some losses, optimism remains, buoyed by positive housing starts data in Montreal and Toronto.

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