National balance sheet and financial flow accounts, first quarter 2025
Released: 2025-06-12
$19.1 trillion
First quarter 2025
0.3% 
(quarterly change)
$34.5 billion
First quarter 2025
-$7.1 billion 
(quarterly change)
$17.6 trillion
First quarter 2025
0.8%
(quarterly change)
14.40%
First quarter 2025
0.00
(quarterly change)
Household net worth rises with gains in both financial and non-financial assets
Households were wealthier in the first quarter of 2025, despite headwinds of economic uncertainty and volatile markets, as their net worth—the value of all assets minus all liabilities—increased $141.2 billion (+0.8%) to $17,599.8 billion. This marked a slowdown from the last quarter of 2024 when net worth expanded by 1.0%, but was also the sixth consecutive quarter of growth. However, as of the fourth quarter of 2024, the wealthiest 20% of households held over two-thirds of financial assets (68.1%) and over half of real estate (51.2%).
Households' financial assets increased 0.9% (+$97.4 billion) in the first quarter of 2025 to $10,920.4 billion despite weaker equity markets. This was the sixth consecutive quarter in which financial assets reached a record high even as trade policy uncertainty roiled markets. The S&P/TSX Composite Index grew a modest 0.8% after a strong second half in 2024. Meanwhile, following five consecutive quarters of growth, the S&P 500 Index shed 4.6% by the end of the first quarter of 2025. This decline deepened significantly in early April, after which markets began to regain lost ground through May. The value of non-financial assets rose for the second consecutive quarter to reach $9,777.6 billion in the first quarter, primarily due to higher residential real estate valuations (+$47.3 billion).
Weighing against asset gains, household financial liabilities, composed primarily of mortgage and non-mortgage debt, increased $13.7 billion (+0.4%) in the first quarter of 2025.
Highlights
During the first quarter of 2025, the Canadian economy grew 0.5% on a real and seasonally adjusted basis, driven by higher exports and an accumulation of business non-farm inventories, which were tempered by stronger imports and slowing housing market activity. On a per capita basis, real gross domestic product (GDP) rose 0.4% after a 0.1% increase in the fourth quarter of 2024.
At the start of 2025, the Bank of Canada continued its strategy of easing monetary policy, announcing two 25 basis point cuts to the policy interest rate, which settled at 2.75% by the end of the first quarter, where it has remained since. These cuts were part of a series of seven consecutive decreases starting on June 5, 2024, as the Bank of Canada shifted its stance as inflation calmed. Despite a more accommodating interest rate environment, economic uncertainty has grown as the threat and imposition of tariffs impacted consumer expectations.
Federal government borrowing, almost entirely made up of bond issuances, was elevated in the first quarter of 2025 and primarily financed by institutional investors who supplied a record amount of funds. Corporate borrowing rebounded after a slowdown in the fourth quarter of 2024, as financing through bonds and non-mortgage loans increased. Household borrowing slowed in the first quarter of 2025 compared with the fourth quarter of 2024 as the debt service burden was unchanged.
Meanwhile, Canada's international investment position declined with the United States but improved relative to the rest of the world.
Household saving rate and investment activities slow
The household saving rate (seasonally adjusted) was down for a second consecutive quarter, declining to 5.7% in the first quarter of 2025, as the rise in household spending (+1.0%) outpaced disposable income gains (+0.8%). Households' net acquisitions of mutual fund shares were $43.4 billion in the first quarter of 2025, following a record $73.5 billion inflow in the fourth quarter of 2024 that was driven by reinvestments. At the same time, Canadian deposits registered net inflows of $7.6 billion, the slowest build-up since the first quarter of 2021.
Residential real estate edges up as affordability slightly improves
The value of residential real estate posted tepid growth (+0.6%) in the first quarter of 2025. Residential real estate has fallen 0.3% over the last four quarters, largely due to a 1.1% drop in the third quarter of 2024. According to Statistics Canada's Building Construction Price Index, construction costs for residential buildings in the 15-census metropolitan area composite rose 3.4% year over year, while the average resale price of homes sold in the first quarter of 2025 was 2.4% lower compared to the first quarter of 2024. Similarly, the value of residential structures (+3.9%) and residential land (-3.7%) have trended in opposite directions over the last four quarters.
Household borrowing slows as debt continues to outpace income growth
In the first quarter of 2025, the pace of household credit market borrowing (seasonally adjusted) slowed to $34.5 billion, down from the fourth quarter of 2024 ($41.6 billion), which represented the fastest pace of borrowing since the second quarter of 2022. Mortgage demand fell slightly, from $30.7 billion in the fourth quarter of 2024 to $27.3 billion in the first quarter of 2025, but still represented the bulk of household borrowing in the first quarter. Meanwhile, demand for non-mortgage debt (including consumer credit) fell to $7.3 billion in the first quarter.
Chart 1
Household credit market debt, seasonally adjusted flows
The seasonally adjusted stock of household credit market debt (consumer credit, and mortgage and non-mortgage loans) continued to climb steadily, rising 1.1% to reach $3,072.3 billion in the first quarter of 2025, with mortgages accounting for almost 75% of the total.
At the same time, the ratio of household credit market debt as a proportion of household disposable income increased for the second consecutive quarter, ticking up to 173.9% in the first quarter as debt grew faster than income. In other words, there was $1.74 in credit market debt for every dollar of household disposable income in the first quarter, but this was still well below the $1.79 registered at the outset of 2024.
Chart 2
Household credit market debt to household disposable income, seasonally adjusted
Household debt service ratio remains steady
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—held firm at 14.40% in the first quarter of 2025 as growth in disposable income kept pace with total debt payments, which helped to curtail aggregate debt servicing pressures.
Mortgage interest payments edged up 0.3% in the first quarter, the first increase in three quarters, likely reflecting a continuing tradeoff between lower prevailing interest rates for new borrowers and higher renewal costs for those with existing fixed-rate mortgages. Interest payments for non-mortgage loans (-2.6% in the first quarter) declined for the third consecutive quarter; a sizeable component of non-mortgage debt consists of home equity lines of credit, which tend to be variable rate loans tied to a lender's prime rate.
Chart 3
Household debt service ratio
Federal government demand for funds accelerates
The federal government's demand for funds—defined as the net issuance of treasuries and bonds and new borrowing less repayments of loans—was $43.9 billion in the first quarter of 2025, up from $21.6 billion in the fourth quarter of 2024. The first quarter borrowing was almost entirely in the form of bonds. The effective interest rate on federal government debt, which refers to the interest paid on interest bearing instruments, eased to 2.76% (annual rate) in the first quarter. Meanwhile, institutional investors, defined as chartered banks, trusteed pension plans, and mutual funds, registered their largest quarterly net purchases of federal government bonds on record ($43.7 billion), including both new and existing issuances.
The federal government's net financial liabilities as a share of gross domestic product (GDP) fell to 33.1% in the first quarter of 2025, while the ratio for other levels of government edged down to 16.4%. Total general government gross debt per capita reached $96,285 in the first quarter of 2025; by comparison, nominal GDP per capita stood at $76,435.
Chart 4
Government net financial liabilities as a percentage of gross domestic product
Upturn in private non-financial corporations' borrowing
Private non-financial corporations' demand for funds was $28.6 billion in the first quarter of 2025, following a more subdued demand for funds in the fourth quarter of 2024. Borrowing was mostly in the form of non-mortgage loans (+$19.1 billion) and net bond issuances (+$11.0 billion). Over the last five quarters, private non-financial corporations have issued nearly $80 billion in bonds; this compares to roughly $26 billion issued from the fourth quarter of 2022 up to the end of 2023.
Chart 5
Demand for funds by private non-financial corporations
In the first quarter of 2025, credit market debt to equity (book-value) reached its highest level (59.9%), surpassing its previous peak in the fourth quarter of 2024. Meanwhile, the ratio of private non-financial corporations' credit market debt to GDP edged up to 72.55% in the first quarter, the fourth consecutive quarterly increase, as growth in credit market debt continued to outpace aggregate economic growth. Overall, credit market debt for private non-financial corporations stood at $2,257.3 billion at the end of the first quarter.
Chart 6
Domestic demand for funds by instrument
National net worth edges up despite weaker international investment position
National net worth, the sum of national wealth and Canada's net foreign asset position, edged up 0.3% in the first quarter of 2025 to $19,125.2 billion, as Canada's international investment position declined (-5.4%) for the first time in six quarters. Canada's international assets contracted for the first time since the second quarter of 2022. Canada's international investment position with the United States fell $177.8 billion to $1,553.3 billion in the first quarter of 2025. In contrast, Canada's international investment position with the rest of the world (excluding the United States) rose by $74.7 billion to $271.5 billion.
The total value of non-financial assets in Canada, also referred to as national wealth, rose 1.0% in the first quarter to $17,300.4 billion, increasing for the second consecutive quarter.
Chart 7
Change in national net worth by component
Focus on Canada and the United States: Foreign Portfolio Investment
Over the last 10 years, the share of Canadians' foreign portfolio investments abroad has become increasingly concentrated in the United States, reaching 73.0% at the end of 2024. This compares to 59.9% at the end of 2014. Foreign portfolio investment includes investment in foreign marketable securities including stocks (less than 10% of voting shares), bonds, and money market instruments.
From the perspective of domestic asset holders in the national balance sheet, in the first quarter of 2025, most foreign portfolio investments were held by the mutual and pension fund sectors (56.1%), while chartered banks (13.5%) and social security funds (12.4%) were the next largest holders of this asset. Roughly 8% of foreign portfolio investments were held directly by Canadian households with significant indirect exposure via investment vehicle holdings such as mutual funds and pension funds. Equity investments accounted for approximately three-quarters of Canada's foreign portfolio investment abroad, standing at roughly $3.1 trillion.
For more data and insights on areas touched by the socio-economic relationship between Canada and the United States, see the Focus on Canada and the United States webpage.
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Note to readers
Revisions
This release of the national balance sheet and financial flow accounts for the first quarter of 2025, includes revised estimates for the first quarter to the fourth quarter of 2024. These data incorporate new and revised data, as well as updated data on seasonal trends.
Data enhancements to the national balance sheet and financial flow accounts, such as the development of detailed counterparty information by sector, will be incorporated on an ongoing basis. To facilitate this initiative as well as others, it is necessary to extend the annual revision period (normally the previous three years) at the time of the third quarter release.
Details on recent revisions to the national balance sheet and financial flow accounts published in the third quarter of 2024 are available in "An overview of the revisions to the Financial and Wealth Accounts, 2020 to 2024."
General
Unless otherwise stated, growth rates represent the percentage change in the series from one quarter to the next; for instance, from the fourth quarter of 2024 to the first quarter of 2025.
Unless otherwise stated, distributional information from the Distributions of Household Economic Accounts program is from the previous quarter. For this first quarter release of the national balance sheet and financial flow accounts, that would be the fourth quarter of 2024.
Unless otherwise stated, this release presents data unadjusted for seasonality.
Support measures by governments
Details on some of the more significant federal government COVID-19 pandemic support measures are available in table 36-10-0687: Federal government COVID-19 support measures in the System of Macroeconomic Accounts, quarterly.
Financial and wealth accounts on a from-whom-to-whom basis: Selected financial instruments
The data visualization product "Financial accounts on a from-whom-to-whom basis, selected financial instruments" has been updated with data from the first quarter of 2024 to the first quarter of 2025. Additionally, the entire from-whom-to-whom data set can now be easily downloaded by navigating to the Notes tab and selecting the desired file under the Data heading.
Accounting for the impact of tariffs in the national balance sheet and financial flow accounts
The imposition of tariffs and counter-tariffs can impact the balance sheet and financial flows in varying ways. All else being equal, government revenues collected from counter-tariffs, net of reimbursements and remissions, would be reflected as net transactions in financial assets (i.e., increased deposit assets of government) or liabilities (i.e., reduction of debt). Uptake of government support programs, such as the Large Enterprise Tariff Loan facility, would result in the appearance of loan assets on the balance sheet of government and debt liabilities of the borrowing sector. Businesses may adjust their inventories, as shown on the balance sheet, in response to anticipated price changes. Tax relief granted in response to tariffs, such as deferred corporate income tax, would be reflected as increased liabilities for corporations (i.e., tax payable). Finally, market volatility resulting from uncertainty around tariffs may impact the market value of equity investments.
Impact of acquisitions
In the first quarter of 2025, two notable acquisitions took place. The first involved two entities in different institutional sectors, which resulted in a shift in economic ownership of assets (i.e., loans) and liabilities between the trust and mortgage loan sector and the chartered bank sector. The changes in the stock of financial assets and liabilities were reflected as other changes in assets/liabilities to distinguish them from transactions such as new lending. By comparison, the second acquisition involved two entities within the same sector, both chartered banks. However, entities may classify financial instruments differently causing one asset type to increase and another to decrease post-acquisition. These changes are also treated as other changes in assets. Acquisitions such as these are routinely reflected within the Financial and Wealth Accounts.
Next release
Data on the national balance sheet and financial flow accounts for the second quarter of 2025 will be released on September 11.
Overview of the financial and wealth accounts
This release of the financial and wealth accounts comprises the national balance sheet accounts (NBSA), the financial flow accounts (FFA), and the other changes in assets account.
The NBSA are composed of the balance sheets of all sectors and subsectors of the economy. The main sectors are households, non-profit institutions serving households, financial corporations, non-financial corporations, government, and non-residents. The NBSA cover all national non-financial assets and all financial asset-liability claims outstanding in all sectors. To improve the interpretability of financial flows data, selected household borrowing series are available on a seasonally adjusted basis (table 38-10-0238-01). All other data are unadjusted for seasonal variation. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.
The FFA articulate net lending or borrowing activity by sector by measuring financial transactions in the economy. The FFA arrive at a measure of net financial investment, which is the difference between transactions in financial assets and liabilities (for example, net purchases of securities less net issuances of securities). The FFA also provide the link between financial and non-financial activity in the economy, which ties estimates of saving and non-financial capital acquisition (for example, investment in new housing) to the underlying financial transactions.
While the FFA record changes in financial assets and liabilities between opening and closing balance sheets that are associated with transactions during the accounting period, the value of assets and liabilities held by an institution can also change for other reasons. These other types of changes, referred to as other economic flows, are recorded in the other changes in assets account.
There are two main components to this account. One is the other changes in the volume of assets account. This account includes changes in non-financial and financial assets and liabilities relating to the economic appearance and disappearance of assets, the effects of external events such as wars or catastrophes on the value of assets, and changes in the classification and structure of assets. The other main component is the revaluation account, showing holding gains or losses accruing to the owners of non-financial and financial assets and liabilities during the accounting period as a result of changes in market price valuations.
At present, only the aggregate other change in assets is available within the Canadian System of Macroeconomic Accounts; no details are available on the different components.
Definitions concerning financial indicators can be found in "Financial indicators from the National Balance Sheet Accounts" and in the Canadian System of Macroeconomic Accounts glossary.
Distributions of household economic accounts
The NBSA for the household sector is allocated across a number of socioeconomic dimensions as part of the distributions of household economic accounts. Data on wealth and its components by income quintile, age group, generation and region are available in tables 36-10-0585-01, 36-10-0586-01, 36-10-0589-01, and 36-10-0590-01.
The methodology for Distributions of household economic accounts wealth estimates can be found in the article "Distributions of Household Economic Accounts, estimates of asset, liability and net worth distributions, 2010 to 2024, technical methodology and quality report."
Products
The document, "An overview of the revisions to the Financial and Wealth Accounts, 2020 to 2024," which is part of Latest Developments in the Canadian Economic Accounts (13-605-X), is available.
The data visualization product "Financial accounts on a from-whom-to-whom basis, selected financial instruments," which is part of Statistics Canada – Data Visualization Products (71-607-X), is now available.
As a complement to this release, you can also consult the data visualization product "Distributions of Household Economic Accounts, Wealth: Interactive tool," which is part of Statistics Canada – Data Visualization Products (71-607-X).
As a complement to this release, you can also consult the data visualization product "Securities statistics," which is part of Statistics Canada – Data Visualization Products (71-607-X).
The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada website, features an up-to-date portrait of national and provincial economies and their structure.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is available.
The Canada: Economic and Financial Data - International Monetary Fund's Special Data Dissemination Standard Plus product (13-608-X), "Other Financial Corporations Survey," also known as "Assets and liabilities of other financial corporations by sector, market value, quarterly" (table 36-10-0668-01), are available.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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