This is an important improvement, because we know that households with this level of debt are more vulnerable to an economic shock, such as a recession. However, I will point out two reasons for continued vigilance. First, because the total amount of debt carried by Canadian households is so large, we know that it will be with us for a long time.
Second, it is still too soon to fully assess the impact of the newest changes to mortgage lending guidelines. These guidelines, which came into effect at the start of the year, were aimed at tightening standards for uninsured mortgages.