Canadian Household Balance Sheet (2025 Q3)

Household wealth continues to climb as financial assets accelerate and real estate values fall

• Canadian household net worth (the value of assets minus liabilities) rose by $460.5 billion or 2.6% quarter-on-quarter (q/q), reaching $18.4 trillion in Q3 2025. This marks the eighth consecutive quarterly gain.
• Financial asset growth accelerated, rising by 4.8% q/q, driven by strong equity market performance in Canada and the U.S. 
• In contrast, residential real estate values fell by 0.6% q/q, reflecting a drop in home prices on a non-seasonally-adjusted basis. 
• Household financial liabilities grew at 1.3% q/q, a slower pace than in Q2.
• The household debt-to-income ratio rose to 176.7%, marking the fourth consecutive quarterly increase, as debt growth outstripped income growth. 
• The debt service ratio (total household debt payments as a percentage of disposable income) edged down to 14.6% from an upwardly revised 14.7% reading in Q2 (previously reported as 14.4%).

Key Implications

• Canadian household wealth has now advanced for eight straight quarters, with financial assets once again the key driver. Further growth is likely in Q4 as North American equity markets push toward new record highs, despite recent volatility. The housing outlook is less encouraging, with recent data pointing to a softening market.
• Revisions worsened both debt-to-income and debt-service ratios, indicating household balance sheets are weaker than previously thought. While this won’t provide strong support for spending heading into 2026, decent growth in personal disposable income should still shift consumer spending from contraction to modest expansion in Q4.

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