Finally, some good news on the Canadian debt front – the latest numbers from Statistics Canada find that Canadian credit levels are shrinking, while household net worth is growing.
The Daily Report, outlining the National Balance Sheet and Financial Flow Accounts (say that five times fast) for the first quarter of 2013, found national wealth clocks in at $7.8 trillion – a $115-billion increase, which is mainly due to an increase in real estate values.
According to the report:
Canadians are richer: Household net worth is $222,600, an increase of 2.5 per cent from Q4 2013.
Homes are worth more: Real estate values increased by 2 per cent.
Mortgage debt is slowing: Total mortgage debt clocks in at $1.1 trillion – a 0.6 per cent increase. This is the slowest rate of mortgage debt growth since 2009.
Canadians have less debt: The national debt-to-income ratio is now 163.2 per cent – down from 163.9 per cent last year.
Canadians own more of their homes: Owner equity in real estate is 69.9 per cent, an increase from 69.5 per cent last year.
Canadians owe less on credit cards: Consumer credit debt decreased 0.3 per cent from Q4 2013 to 507 billion. Accoring to Stats Can, “Consumer credit debt as a proportion of total outstanding household debt has generally been declining since the financial crisis.”