On a per capita basis, net worth was $186,900 in the second quarter, up from $185,300 the previous quarter.
But household net worth fell 0.3% in the second quarter to reach $184,300, as the residential real estate gains were not enough to offset the decline in Canadian investments in equities such as mutual funds, and pension assets. It was the first decline since the second quarter of 2010.
Statistics Canada noted that the Standard and Poor’s/Toronto Stock Exchange composite index fell 5.9% during that time.
Credit market debt in the household sector grew in the second quarter, which Statistics Canada pinned both on higher mortgage debt, as well as consumer credit borrowing.
“Home owners’ equity as a percentage of real estate assets edged down further in the second quarter, as the credit market debt to net worth ratio increased for the fourth straight quarter to 24.4%,” said the report.
A low interest rate has encouraged increased borrowing lately in the residential housing sector.
TD Economics reported the household debt-to-income ratio in Canada was 147% in the second quarter, whereas a ratio of 138% to 142% is considered "appropriate" by its economists.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate