It appears the advertising slogan is
true. Canadians may well be richer than
they think.
A recent survey by Statistics Canada shows
that household net worth in this country rose to a record high of nearly $17
trillion in the first quarter of this year. That is a 3.3%, or $548 billion,
increase over the fourth quarter of 2023 and is the second quarterly increase
in a row.
The growth was fed by a 3.6%
quarter-over-quarter rise in financial assets and a 2.6% increase in the value
of residential real estate.
StatsCan says 90% of all net worth is held by
homeowners.
Along with the gains in assets, Canadian
households have also diminished their liabilities.
High interest rates have dramatically reduced
borrowing, which grew by just 0.3% in Q1.
That combined with income growth that outpaced debt growth saw the
household debt-to-income ratio drop to 176%.
That is still high, but it is the fourth consecutive decline in the
debt-to-income ratio and it is a notable reduction from the 178% posted in Q4
of 2023.
Canadians are also saving more. The household saving rate rose to 6.9% in Q1,
its highest level in two years.
Canadians tended to put their savings into mutual funds and ETFs. They parked $23.8 billion in these
investments in Q1, more than in all of 2023.