![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2018\/09\/JPbombales-6953-compressed.jpg\")
<\/a><\/p>\nPhoto: James Bombales<\/em><\/p>\n Ever since the introduction of a new mortgage stress test in January, Canadians\u2019 mortgage debt levels have been on the decline, and last quarter was no exception.<\/p>\n Mortgage borrowing declined by $3.6 billion in the second quarter of 2018, according to the latest data release from Statistics Canada.<\/p>\n \u201cOn a seasonally adjusted basis, total credit market borrowing slowed for the second consecutive quarter as households borrowed $19.6 billion, down from $22.2 billion in the previous quarter,\u201d reads the report. \u201cWhile consumer credit increased, this was more than offset by a decline in mortgage loans.\u201d<\/p>\n\n But, even as mortgage debt begins to decline, Canadians\u2019 household debt-to-income ratio remained relatively unchanged, as a cooling housing market led to a drop in residential property values.<\/p>\n \u201cGrowth in residential real estate has proceeded at a slower pace over the last five quarters, due to more moderate housing resale prices,\u201d reads the report. \u201cOverall, the debt-to-asset ratio remained relatively unchanged as growth in assets narrowly outpaced growth in liabilities.\u201d <\/p>\n Many economists remain concerned about Canadians\u2019 household debt levels, which remain some of the highest in the world, despite the falling mortgage debt. Earlier this month, BMO senior economist Benjamin Reitzes wrote that the problem was far from solved. <\/p>\n