Canada’s national statistics agency quietly dropped a Christmas gift for analysts this morning. Statistics Canada (StatCan) data shows household debt-to-income (DTI) climbed sharply in Q3—but the real insight was a bonus DTI normalized for US comparison. The agency notes that American households saw their ratio peak in 2007, while Canadians kept piling on debt until the ratio peaked in 2022. Both countries peaked just after home prices hit record highs, followed by a sharp correction and broad deleveraging.  

Debt-To-Income Ratio

Before we dive into the data, let’s quickly make sure we’re all on the same page—no data nerd left behind. The household debt-to-income (DTI) ratio measures how households carry debt relative to their disposable income. A falling ratio means income is growing faster than debt—often a sign of improving financial health and more productive, less credit-reliant economic growth.  

A rising DTI means debt is outpacing income, signalling a deterioration in household finances. It’s not always bad in the short term, but persistent reliance on credit to offset weak income growth is. Debt is future income used for consumption today (plus interest), and acts as a tax on future growth.  

Canadian Household Debt-To-Income Peaked With Housing In 2022

Canadian DTI jumped 1.6 points to 161.7% in Q2 2025—the largest quarterly jump since 2022. Over just one quarter, household finances effectively reversed five quarters of progress, hitting the highest level since Q1 2024. However, it’s still significantly below the record high hit in 2022, as shown below. 

US Household Debt-To-Income Peaked In 2007—Along With Housing 

Our neighbours to the South may have a global reputation for their debt binge, but household finances have made dramatic improvements—and still are. The US DTI fell 0.6 points to 123.7% in Q2 2025, falling to the lowest level since Q1 2021. Excluding that pandemic outlier, DTI is now the lowest since 2001.

Canada’s 2008 Moment? Household Debt Peaked After Home Prices—Just Like In The US

Canada and US household debt-to-income ratio, normalized for cross-country comparison by StatCan, percent.

Source: StatCan; Better Dwelling. 

The agency had few words, but flagged Canada’s prolonged debt binge. “… beginning in 2011, Canada’s ratio surpassed that of the United States and has continued to outpace that of the United States, whose households’ borrowing became more aligned with their incomes,” explained StatCan.  

StatCan also highlighted the peaks—though the timing may be more revealing than they intended. US DTI peaked at 170.25% in Q4 2007, just after home prices topped in 2006 and before a sharp correction heard ‘round the world. Canada’s DTI peaked at 174.13% in Q3 2022—also shortly after home prices peaked. Whether this is Canada’s 2007 moment remains to be seen. 

Recent IIF data shows Canada bucking the global deleveraging trend. Commenting on the release, BMO economists noted private and public debts typically have an inverse relationship—but Canada is an exception. Household debt continued to rise with government debts, defying the global trend of households pulling back. 

Both StatCan and BMO walked readers to the problem but fell short of spelling it out. It’s obvious: if debt is the fallback in good times, what’s left to mitigate bad ones? Households went on an epic binge to mitigate major issues during the 2008 crisis. Governments went on their own binge during the 2020 shock. Now both are sitting on substantial debts, leaving little room to respond to the next downturn, potentially turning a routine correction into a shock.