New data show stronger balance sheets
Canadian household net worth surpassed $18.6 trillion in the first quarter of 2026, lifted by recovering real estate values and equity market gains, even as debt loads climbed for the sixth consecutive quarter, Statistics Canada reported.
Net worth — the value of all assets minus all liabilities — rose 1.3% in the January-to-March period. On a per capita basis, the figure climbed from $442,896 to $448,433.
Real estate rebounds
Non-financial assets reversed two consecutive quarterly declines, rising 1.1%, led by a recovery in residential real estate. The total value of household real estate rose 1.3% to $8,474.3 billion, Statistics Canada said, even as the number of resales fell 8.4% on a seasonally adjusted basis.
The MLS House Price Index showed the composite house price edging up 0.7% in the first three months of 2026. New condominium prices told a different story: Statistics Canada's New Condominium Apartment Price Index showed prices had fallen 5.9% in Toronto and 2.9% in Vancouver since the first quarter of 2025. The Bank of Canada's Financial Stability Report noted that condominium market pressures in those two cities had created challenges for owners and investors.
TD Bank economist Maria Solovieva said declining home prices in recent quarters may have drawn buyers off the sidelines, pushing residential real estate values higher. "This quarter, we're expecting some strength in home prices," Solovieva told Yahoo Finance. "It's a reflection, mostly, of some recovery in the housing market after a fairly low slump."
Financial assets add $148 billion
Household balance sheets gained $148.0 billion in financial assets, driven by net purchases of mutual fund units and higher valuations of domestic equities and investment funds, even as foreign equity holdings eased. The S&P/TSX Composite Index rose 3.3% in the quarter, with gains concentrated in energy and mining stocks, though Statistics Canada noted it was the slowest quarterly growth since Q1 2025.
Households registered the third-largest acquisition of mutual fund shares on record at +$75.3 billion. At the same time, holdings of currency and deposits fell — the first such reduction since Q1 2013 and the sharpest since Q4 2001.
"Household wealth continued to expand in Q1 despite elevated market volatility," Solovieva said in a note. "Looking ahead, the backdrop for wealth accumulation remains broadly positive, but heightened uncertainty may make households more cautious about spending out of wealth."
Debt outpaces income
Despite the wealth gains, household indebtedness continued to climb. The seasonally adjusted ratio of credit market debt to disposable income rose for a sixth straight quarter, reaching 179.6% — roughly $1.80 in debt for every dollar of household disposable income. Total household credit market debt stood at $3,253.4 billion.
Total household borrowing reached $35.5 billion on a seasonally adjusted basis. Mortgage demand softened, with net originations falling to $22.6 billion — the slowest pace since Q1 2024 and the largest quarterly decline since Q4 2023 — but was offset by growth in non-mortgage and consumer credit.
The household saving rate fell to 3.5%, its lowest since Q1 2024, as spending growth of 0.9% outpaced disposable income growth of 0.6%.
The debt service ratio — total principal and interest payments as a proportion of disposable income — ticked up to 14.75% from 14.68% in Q4 2025.
Wealth gap widens
The gains remain heavily concentrated. The top 20% of households by wealth held 65.7% of Canada's total net worth by the end of 2025, averaging $3.5 million per household. The wealth gap between the top 20% and the bottom 40% reached 62.7 percentage points — up 0.6 percentage points over the year, Statistics Canada said.
National debt climbs
At the national level, net worth edged up to $19,190.7 billion. Canada's international investment position fell by $310.8 billion to $1,360.5 billion — its lowest since Q3 2023 — with market price revaluations accounting for most of the drop.
Total government gross debt per capita rose to $103,923, exceeding nominal GDP per capita of $80,092. Other levels of government borrowed $41.2 billion in bonds during the quarter, the second-highest level on record.
Statistics Canada's next release, covering Q2 2026, is scheduled for Sept. 11.
