Canadian households were wealthier in the second quarter of 2025, as their net worth—the value of all assets minus all liabilities—increased by over a quarter of a trillion dollars (+$257.7 billion; +1.5%) to reach $17,877.1 billion, the seventh consecutive quarterly increase. This accumulation of wealth took place despite headwinds of global trade pressures and a weakening economy, reported Statistics Canada.
“However, these gains are likely not evenly distributed among households as the wealthiest (top 20% of the wealth distribution) hold almost 70% of financial assets and are therefore best positioned to benefit from investment income and valuation gains when markets perform well,” said the federal agency.
“Households’ financial assets increased 2.7% (+$291.1 billion) in the second quarter of 2025 to $11,224.5 billion, an acceleration from the first quarter, as equity markets proved to be resilient in the face of trade policy uncertainty and increased volatility. The S&P 500 Index posted a double-digit gain (+10.6%) following a decline in the first quarter. Meanwhile, the S&P/TSX Composite Index grew 7.8% in the second quarter, following subdued growth (+0.8%) in the first quarter. The value of residential real estate edged lower (-$3.3 billion) in the second quarter, putting downward pressure on the overall growth of non-financial assets (+0.1%).
“Weighing against asset gains, household financial liabilities, composed primarily of mortgage and non-mortgage debt, increased $46.7 billion (+1.5%) in the second quarter of 2025.”
The household saving rate (seasonally adjusted) fell to 5.0% in the second quarter of 2025, as the rise in household spending (+1.2%) outpaced sluggish growth in disposable income (+0.3%). Households’ net acquisitions of mutual fund shares were a sizeable $28.5 billion in the second quarter; however, this followed a combined $118.3 billion inflow over the fourth quarter of 2024 and first quarter of 2025. Households added $10.7 billion in Canadian currency and deposits in the second quarter, the slowest build-up since the first quarter of 2021, said Statistics Canada.
The value of residential real estate stood at $8,375.9 billion in the second quarter of 2025, nearly unchanged from the previous quarter, while the pace of resale activity slowed 2.0% on a seasonally adjusted basis. According to Statistics Canada’s New Housing Price Index, new house prices have fallen 0.9% over the first six months of 2025. Since the first quarter of 2024, residential real estate has shed a relatively modest 0.3% in value. Owner’s equity as a percentage of real estate dropped to 73.7% in the second quarter of 2025 from 75.0% in the second quarter of 2024, as the value of outstanding mortgages grew despite softening valuations, it said.
The household debt service ratio—measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income—ticked up from 14.37% to 14.41% in the second quarter of 2025, following five consecutive quarterly declines. Mortgage interest payments rose 0.9% in the second quarter, while obligated principal payments were relatively unchanged from the previous quarter; this likely reflected some upward pressure on interest costs from mortgage renewals, added Statistics Canada.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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