Canadian Household Balance Sheet (2026 Q1)

Household wealth continues to climb in the first quarter

• Canadian household net worth (assets minus liabilities) rose by $243 billion, or 1.3% quarter-on-quarter (q/q), to $18.6 trillion in Q1 2026, marking the tenth consecutive quarterly gain. Notably, Q4 2025 wealth growth was revised down sharply from $230 billion to just $15 billion.
• Financial assets increased 1.3% q/q, supported by fund inflows and gains in Canadian equity markets, which more than offset weakness in U.S. equities.
• Residential real estate values also rose 1.3% q/q as home prices increased during the quarter.
• Household financial liabilities increased 0.4% q/q, slowing from Q4 as borrowing eased. On a seasonally adjusted basis, credit growth accelerated, with non-mortgage borrowing strengthening and mortgage balances growth moderating.
• Despite modest growth in liabilities, the household debt-to-income ratio rose to 179.6%, marking a sixth consecutive quarterly increase as debt growth continued to outpace income growth.
• The debt-service ratio (total household debt payments as a share of disposable income) rose to 14.75%, the first increase in three quarters. The ratio is still lower than the 15.17% peak, registered two years ago.
  
   

Key Implications

• Household wealth continued to expand in Q1 despite elevated market volatility. Financial asset gains continued, supported primarily by fund inflows and resilient Canadian equity markets, although growth slowed to its weakest pace in a year. Real estate also provided support this quarter, with higher home prices lifting housing wealth despite subdued sales activity. Looking ahead, the backdrop for wealth accumulation remains broadly positive, but heightened uncertainty may make households more cautious about spending out of wealth.
• Household leverage continues to edge higher. The debt-to-income ratio has risen for six consecutive quarters as debt growth outpaced income growth. Our recent analysis of provincial household balance sheets, based on Q4 2025 data, found that Ontario and Prince Edward Island were the only provinces where debt-to-income ratios rose above 2019 levels, with Ontario continuing to post the highest household leverage in the country. This suggests that financial vulnerabilities remain concentrated in Ontario, while household balance sheets elsewhere in Canada are generally in a stronger position.
  
   

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