Net worth

Net worth of Canadians plummets by record $990 billion

The net worth of Canadians is falling 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.

According to Statistics Canada, the net worth of the household sector in Canada fell by $990.1 billion, or
6.1% to $15.2 trillion in the second quarter of this year as inflation hit a 40-year high.

The drop in household net worth was the largest on record as Canadians grapple with a
the weakening of the housing market, a continued decline in equity prices and soaring consumer prices.

The total value of Canadians’ financial assets fell by a record $530.6 billion in the quarter, while
borrowing has increased while demand for mortgages and other debt securities remains strong.

According to Statistics Canada, people took on “near-record $56.3 billion in debt” in the second quarter. The agency
also noted that fewer Canadians are taking out variable rate mortgages as interest rates rise.