Federal finance officials are facing pushback after telling MPs Canadians are seeing “real gains in income,” even as parliamentarians raised concerns about soaring household debt, homelessness and food insecurity.Appearing before the Commons finance committee, the finance department’s senior director of forecasting Brian Torgunrud said wages have outpaced inflation, resulting in improved real incomes. Blacklock's Reporter said he maintained that while debt levels remain high, Canadian households still hold significantly more in assets than liabilities.MPs quickly challenged that assessment, citing worsening economic pressures on many Canadians. Conservative MP Sandra Cobena pointed to findings from the Canadian Human Rights Commission warning that rising poverty, food insecurity and homelessness are putting the basic standard of living at risk.Cobena pressed officials on whether forecasts account for these trends, but Torgunrud said projections rely on private sector economic surveys and that his department does not directly track measures like homelessness.The committee hearing focused heavily on Canada’s growing household debt burden, now estimated at $2.6 trillion, including $1.9 trillion in mortgages. Conservative MP Jasraj Hallan noted Canadians now carry the highest household debt-to-income ratio in the G7, a position Torgunrud confirmed..Hallan cited figures showing the ratio has climbed to roughly 177%, reflecting a sharp increase over the past decade.Witnesses from credit agencies painted a more troubling picture beneath headline numbers. Matt Fabian, of TransUnion Canada, testified that about one in ten borrowers missed payments as interest rates rose following the pandemic, with younger Canadians carrying a significant share of outstanding debt.Sue Hutchison, of Equifax Canada, said overall figures mask deeper financial strain among lower-income households. She noted debt-to-income ratios exceed 428% for the lowest earners, compared to about 130% for the highest-income group, and rise above 200% when top earners are excluded entirely.
