The net worth of Canadian households—the value of all assets minus all liabilities—rose 1.3% in the first quarter of 2026 to reach just over $18.6 trillion, as the value of both non-financial and financial assets increased in tandem. Following two consecutive quarterly declines, non-financial assets were up 1.1% in the first quarter of 2026, led by an uptick in the value of residential real estate. Financial assets increased by 1.3%, reported Statistics Canada recently.
Household balance sheets added $148.0 billion in financial assets in the first quarter of 2026, and this gain was driven by net purchases of mutual fund units and higher valuations of domestic equities and investment funds amid easing valuations for foreign equity holdings. In terms of domestic equity markets, the Standard & Poor’s/Toronto Stock Exchange Composite Index increased by 3.3% in the first quarter of 2026, and this gain was concentrated in energy and mining stocks. This marked the slowest quarterly growth since the first quarter of 2025 (+0.8%), said the federal agency.
Meanwhile, household liabilities, composed primarily of mortgage and non-mortgage debt, edged up by 0.4% in the first quarter of 2026, continuing the seasonal trend of comparatively modest first-quarter growth, which generally coincides with lower resale activity and new construction. Overall, households’ net financial assets—defined as financial assets minus liabilities—grew by 1.6% for the second consecutive quarter, it added.
On a per capita basis, household net worth increased from $442,896 to $448,433 in the first quarter of 2026; the proportion of non-financial assets as a share of household net worth fell to 53.4% (-0.1 percentage points), said Statistics Canada.
“The household debt service ratio—measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income—rose after two consecutive quarterly declines. The ratio finished the first quarter of 2026 at 14.75%, up from 14.68% in the fourth quarter of 2025, as total debt payments rose 1.1% to outpace income. At the same time, mortgage interest payments increased 0.9% in the first quarter of 2026, following decreases in the third and fourth quarters of 2025,” explained Statistics Canada.
“Household wealth continued to expand in Q1 despite elevated market volatility. Financial asset gains continued, supported primarily by fund inflows and resilient Canadian equity markets, although growth slowed to its weakest pace in a year. Real estate also provided support this quarter, with higher home prices lifting housing wealth despite subdued sales activity. Looking ahead, the backdrop for wealth accumulation remains broadly positive, but heightened uncertainty may make households more cautious about spending out of wealth,” said Maria Solovieva, Economist, with TD.
“Household leverage continues to edge higher. The debt-to-income ratio has risen for six consecutive quarters as debt growth outpaced income growth. Our recent analysis of provincial household balance sheets, based on Q4 2025 data, found that Ontario and Prince Edward Island were the only provinces where debt-to-income ratios rose above 2019 levels, with Ontario continuing to post the highest household leverage in the country. This suggests that financial vulnerabilities remain concentrated in Ontario, while household balance sheets elsewhere in Canada are generally in a stronger position.”
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