Household Wealth Up as Housing Leads Gains, but Savings and Debt Weigh on Canadians
Household net worth rose 1.3% in the first quarter of 2026 to $18.6 trillion, up 4.9% from a year earlier. Most of the improvement came from financial assets such as mutual funds and equities, buoyed by the S&P/TSX Composite Index’s 3.3% gain . A rebound in housing helped non‑financial assets jump 1.1%, the biggest advance since 2024. Residential real estate climbed 1.3% to $8.47 trillion even though sales were weak, thanks to higher prices. The national MLS Home Price Index edged up 0.7% in Q1, but new condo prices in Toronto and Vancouver fell 5.9% and 2.9%, respectively, showing pockets of weakness . RBC economists welcomed the end of housing’s drag on wealth but cautioned that momentum remains fragile.
Despite those paper gains, households’ finances are tightening. The savings rate slipped to 3.5%, down from 4.4% the previous quarter, and currency and deposit holdings shrank . Households continued to add debt, which rose 1.1% to $3.25 trillion, while mortgage originations were unusually weak at $22.6 billion, the lowest since early 2024 . Debt payments now consume nearly one‑seventh of disposable income, and RBC notes that households have been drawing on savings to maintain consumption . As a result, net worth keeps climbing thanks to asset gains, but declining savings and rising debt indicate many Canadians are wealthier on paper while their cash flow deteriorates.
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