Canadian National Balance Sheet (2026 Q2)

Household wealth breaches $19 trillion as financial assets and real estate values rise

• Canadian household net worth (assets minus liabilities) rose by $546 billion, or 2.9% quarter-on-quarter (q/q), to breach $19 trillion in Q2 2026, marking the eleventh consecutive quarterly gain.
• Financial assets surged 4.5% q/q, driven by strong global equity market performance. This was the strongest quarterly gain since Q4 2020.
• Residential real estate values also rose 0.4% q/q, as home prices increased during the quarter.
• Household financial liabilities increased 1.3% q/q, accelerating from Q1. However, on a seasonally adjusted basis, credit growth slowed, with both non-mortgage and mortgage borrowing moderating. 
• The household debt-to-income ratio eased to 176.4% as stronger income growth outpaced growth in household debt. This was the lowest level since Q1 2025.
• The debt-service ratio (total household debt payments as a share of disposable income) also eased to 14.52%, well below its 15.13% peak in 2023.
  
   

Key Implications

• Household wealth continued to expand in Q2, breaching the $19 trillion mark as financial assets surged and rising real estate values provided additional support. Looking ahead, the backdrop for wealth accumulation remains broadly positive. Despite the recent pullback in equity prices, both Canadian and U.S. markets remain higher so far in Q3, while we expect home prices to continue rising through the quarter. 
• More good news came from household leverage. Stronger income growth, supported in part by federal measures, pushed the debt-to-income ratio lower while the debt-service ratio fell to its lowest level since Q3 2022. Combined with continued gains in household wealth, easing leverage should provide additional support to consumer spending. 
  
   

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