The net worth of Canadians is on the decline as households take on more debt to cope with the
rising cost of living, according to new data from Statistics Canada.
The federal agency reported that the average Canadian now owes $1.82 for every dollar of
disposable income they have, up from $1.79 previously.
Statistics Canada said that household sector net worth in Canada declined by $990.1 billion, or
6.1%, to $15.2 trillion in this year’s second quarter as inflation soared to a 40-year high.
The drop in household net worth was the largest decline on record as Canadians struggle with a
weakening housing market, a continued slide in stock prices, and skyrocketing consumer prices.
The total value of Canadians’ financial assets fell by a record $530.6 billion in the quarter, while
borrowing grew as demand for mortgages and other debt instruments remains elevated.
Statistics Canada said people took on “a near record $56.3 billion of debt” in Q2. The agency
also noted that fewer Canadians are taking out variable rate mortgages as interest rates rise.
