THIS BLOG GOES LIVE ON MONDAY, DECEMBER 22, 2025, AT NOON - WATCH THE VIDEO NOW!
CANADA’S ECONOMIC ILLUSION: NET WORTH UP, HOUSEHOLD DEBT-TO-INCOME RATIO (DTI) SOARS
Household Debt-to-Income Ratio (DTI) Climbs Along With Net Worth: this video is the explainer companion to our complete guide on Canada’s 2025 economic illusion. Canadian net worth has risen on the back of markets and housing, while household debt-to-income keeps climbing and growth stalls.
In this Canadian‑focused DTI guide, you will learn:
What the household debt‑to‑income (DTI) ratio is, and why Canadians now owe roughly $1.75 for every $1 of disposable income
How net worth can rise on “paper wealth” while many families feel poorer in real life
Why rising DTI, record household debt and softer growth are creating a dangerous economic illusion for 2026
How a K‑shaped economy is widening the gap between asset‑rich Canadians and those struggling with debt and shrinking savings
Practical steps to lower your DTI, rebuild your safety net, and protect your household or small business if conditions worsen in 2026
If you feel like you are on the downward arm of that K – with rising payments, less savings and more stress – you are not alone, and there are government‑regulated solutions that can provide a real, legal fresh start. As Licensed Insolvency Trustees, the Ira Smith team can help you confidentially review your situation and explain every option available.
📞 Book a free, confidential consultation:
905.738.4167 or 647.799.3312
📚 Read the full blog: “Household Debt-to-Income Ratio (DTI) Climbs Along With Net Worth: Our Complete Guide On Canada’s Economic Illusion”
https://irasmithinc.com/blog/household-debt-to-income-ratio-dti/
👍 If this helped you understand your DTI and Canada’s debt picture, please like, subscribe, and share it with someone who may be feeling the squeeze.
Chapters:
00:00 Intro – Canada’s 2025 Economic Illusion
00:32 What Is the Household Debt-to-Income (DTI) Ratio?
01:21 Meet Ira Smith & How Licensed Insolvency Trustees Help
02:48 The Explainer – Setting Up the Paradox
03:19 Economy Shrinking While Net Worth Rises
03:48 Paper Wealth: Markets, Housing, and the Illusion of Wealth
04:24 Who Actually Gets Richer? Top 20% vs Everyone Else
05:01 The Real Story – Rising Household Debt and Pressure
05:10 Canada’s DTI at $1.75 of Debt per $1 of Income
05:35 Why Your DTI Ratio Matters for Your Financial Health
05:56 How Lenders View Risk and High DTI Zones
06:01 Shrinking Savings Rate and Thinner Safety Nets
06:07 Explaining the K-Shaped Economy in Canada
06:31 Upper Arm of the K – Asset Owners and Market Gains
06:44 Lower Arm of the K – Debt, Cost of Living, and Stress
06:50 What This All Means for You Heading Into the New Year
06:57 Practical Steps: Know Your DTI, Pay Down Debt, Rebuild Savings
07:13 Impact on Small Business, Credit, and Lending Conditions
07:27 When You’re on the Downward Arm of the K
07:39 Legal Fresh Start Options and Government-Regulated Solutions
07:52 Why a Fresh Start Is a Legal Reality in Canada
08:03 Taking the First Step and Getting Free Professional Help
08:09 How the Ira Smith Team Can Help You Move Forward
08:16 Thanks for Watching and Next Steps
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