Canada’s households saw their net worth climb for the seventh consecutive quarter in Q2 2025, even as broader economic challenges, including global trade tensions and soft export activity have persisted. According to Statistics Canada, this growth reflects especially strong performance in financial assets and equity markets, though rising liabilities and uneven gains across income brackets temper the positive news for many.
Key Figures & Drivers of Wealth Growth
- Total household net worth rose by 1.5% quarter-over-quarter, increasing by about C$257.7 billion to reach C$17.877 trillion in Q2 2025.
- Financial assets contributed heavily: households’ financial assets jumped 2.7% (+ C$291.1 billion) to C$11.2245 trillion, reflecting robust gains in equities. The S&P/TSX Composite Index advanced 7.8% in the quarter, while the U.S. S&P 500 surged 10.6%.
- Non-financial assets (including residential real estate) saw more modest movement. Residential real estate values dipped slightly, by about C$3.3 billion, and non-financial assets overall edged up by only 0.1%.
Offsetting Factors & Risks
- Household liabilities rose in parallel: credit-market debt (mortgages, non-mortgage loans) increased by C$46.7 billion (1.5%) during Q2.
- Debt burdens remain high: the household debt service ratio ticked upward for the first time in six quarters to 14.41%, indicating that a larger share of household income is being committed to servicing debt.
- Despite asset gains, growth in wealth is uneven. The top 20% of households hold nearly 70% of financial assets, positioning them to benefit disproportionately from equity market strength. Lower-wealth households, with fewer financial assets and more exposure to debt, are less well-placed to benefit.
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Written for the Canadian Chamber of Commerce in Hungary News Section as part of our ongoing coverage of developments affecting Canadian trade, economy and international partnerships, September 2025