Anyone worrying about potentially high levels of debt can breathe a sigh of relief if a new report from the Fraser Institute is to be believed.
The report explains recent debt numbers aren’t taking into account the $10-trillion Canadians have in assets.
Business analyst Robert Levy says what Canadians are worth between their stock market portfolios and home prices is much higher than 10 years ago.
“Do Canadians have reason to be a little cautious of debt levels? Certainly they do…but until we are at a point of we are vulnerable, we don’t have reason to be concerned. And at this point what the Fraser Institute is saying is we aren’t vulnerable yet.”
“What policy makes maybe need to consider a little more is that our debt situation isn’t extreme because the assets that they are ridden against like our homes are going up in value with them.”
The study says Canadians actually have a relatively low ratio of debt to income.