National balance sheet and financial flow accounts, first quarter 2026
Released: 2026-06-12
$19.2 trillion
First quarter 2026
0.4% 
(quarterly change)
$35.5 billion
First quarter 2026
$1.0 billion
(quarterly change)
$18.6 trillion
First quarter 2026
1.3%
(quarterly change)
14.75%
First quarter 2026
0.07
(quarterly change)
Household net worth rises in the face of volatile equity markets
The net worth of Canadian households—the value of all assets minus all liabilities—rose 1.3% in the first quarter of 2026 to reach just over $18.6 trillion, as the value of both non-financial and financial assets increased in tandem. Following two consecutive quarterly declines, non-financial assets were up 1.1% in the first quarter of 2026, led by an uptick in the value of residential real estate. Financial assets increased by 1.3%.
Household balance sheets added $148.0 billion in financial assets in the first quarter of 2026, and this gain was driven by net purchases of mutual fund units and higher valuations of domestic equities and investment funds amid easing valuations for foreign equity holdings. In terms of domestic equity markets, the Standard & Poor's/Toronto Stock Exchange Composite Index increased by 3.3% in the first quarter of 2026, and this gain was concentrated in energy and mining stocks. This marked the slowest quarterly growth since the first quarter of 2025 (+0.8%).
Meanwhile, household liabilities, composed primarily of mortgage and non-mortgage debt, edged up by 0.4% in the first quarter of 2026, continuing the seasonal trend of comparatively modest first-quarter growth, which generally coincides with lower resale activity and new construction. Overall, households' net financial assets—defined as financial assets minus liabilities—grew by 1.6% for the second consecutive quarter.
On a per capita basis, household net worth increased from $442,896 to $448,433 in the first quarter of 2026; the proportion of non-financial assets as a share of household net worth fell to 53.4% (-0.1 percentage points).
Highlights
Real gross domestic product (GDP) was unchanged in the first quarter of 2026, after declining 0.2% in the fourth quarter of 2025. Despite weakness in the first quarter of 2026, household spending increased and businesses accumulated inventories. Canada's population declined for a second consecutive quarter, which, combined with flat economic activity, pushed real GDP per capita higher (+0.2%).
The Bank of Canada maintained the policy rate on the two decision dates within the first quarter of 2026, citing macroeconomic uncertainty. Meanwhile, Government of Canada bond yields increased as financial markets reacted to evolving macroeconomic conditions, including heightened geopolitical tensions, as the war in the Middle East contributed to greater volatility and elevated energy prices.
The household saving rate dropped to 3.5%, the lowest rate since the first quarter of 2024, as expenditures outpaced incomes. Canadian equity markets bolstered household wealth, as rising real estate values completed the duet, with household net worth rising nearly $250 billion in the first quarter of 2026.
The household debt service ratio ticked up, while the debt-to-asset ratio improved slightly and the effective interest cost of total loans held steady. Households increased their leverage as measured by the ratio of credit market debt to disposable income, which rose for a sixth straight quarter.
Other levels of government borrowing (excluding federal) reached $41.2 billion in the first quarter of 2026, the second-highest level on record. Borrowing came primarily in the form of bonds, and it was met by the highest level of non-resident investor demand for this debt.
Chart 1
Change in household net worth by component
Fund investment remains strong despite a falling household saving rate
The household saving rate (seasonally adjusted) fell to 3.5% in the first quarter of 2026, as growth in disposable income (+0.6%) lagged that in nominal household spending (+0.9%).
Households continued purchasing mutual fund shares in the first quarter of 2026, registering the third-largest acquisition (+$75.3 billion) on record and following the record-high investment in the fourth quarter of 2025 (+$97.1 billion). In 2025, households benefitted from record-high reinvested earnings through fund investment incomes and capital gains, while in the first quarter of 2026, households focused on record net investments in exchange-traded funds.
Households diminished their holdings of currency and deposits in the first quarter of 2026, the first such reduction since the first quarter of 2013 and the largest since the fourth quarter of 2001.
Value of residential real estate grows despite sales slowdown
The value of household residential real estate rose 1.3% to $8,474.3 billion in the first quarter of 2026, despite a decline in real estate activity as measured by resales. According to the MLS House Price Index, the composite house price increased by 0.7% (unadjusted for seasonality) in the first three months of 2026; however, the number of resales declined by 8.4% on a seasonally adjusted basis. In contrast, Statistics Canada's New Condominium Apartment Price Index (NCAPI) indicated that, since the first quarter of 2025, new condominium apartment prices have fallen by 5.9% in Toronto and by 2.9% in Vancouver. According to the Bank of Canada's Financial Stability Report, pressures in condominium markets, particularly in Toronto and Vancouver, have created challenges for condominium owners and investors.
Household borrowing moves higher as mortgage demand softens
The pace of seasonally adjusted household credit market borrowing (consumer credit and mortgage and non-mortgage loans) edged up to reach $35.5 billion in the first quarter of 2026. Declining demand for mortgage debt was more than offset by growth in non-mortgage debt (including consumer credit). Net originations of mortgage loans declined to $22.6 billion in the first quarter of 2026, the slowest pace of borrowing since the first quarter of 2024 and the largest quarterly decline (-$3.7 billion) since the fourth quarter of 2023.
Chart 2
Household credit market debt, seasonally adjusted flows
Household credit market debt outpaces income for the sixth straight quarter
The seasonally adjusted stock of household credit market debt reached $3,253.4 billion in the first quarter of 2026. At the same time, the ratio of household credit market debt as a proportion of household disposable income increased for the sixth consecutive quarter, climbing by 0.9 percentage points to 179.6% in the first quarter of 2026. In other words, there was roughly $1.80 in credit market debt for every dollar of household disposable income.
From a wealth perspective, household credit market debt represents less than one-fifth (17.4%) of household net worth. However, some households may not have any debt and net worth varies significantly among households, as the wealthiest households (top 20% of the wealth distribution) accounted for almost two-thirds (65.7%) of Canada's total net worth at the end of 2025, averaging $3.5 million per household. The gap in wealth between households in the top 20% and the bottom 40% reached 62.7 percentage points at the end of 2025, up 0.6 percentage points over the course of the year.
Chart 3
Household credit market debt to household disposable income, seasonally adjusted
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—rose after two consecutive quarterly declines. The ratio finished the first quarter of 2026 at 14.75%, up from 14.68% in the fourth quarter of 2025, as total debt payments rose 1.1% to outpace income. At the same time, mortgage interest payments increased 0.9% in the first quarter of 2026, following decreases in the third and fourth quarters of 2025.
Chart 4
Household debt service ratio
Public debt issuances persist
The federal government's demand for funds was $32.4 billion in the first quarter of 2026, down from $44.2 billion in the first quarter of 2025. In the first quarter of 2026, demand was comprised of net issuances of federal bonds (+$21.8 billion; long-term debt), treasury bills (+$8.4 billion; short-term debt) and loans (+$2.2 billion). The non-resident sector was the primary purchaser of federal bonds (+$19.7 billion) in the first quarter of 2026, following its largest quarterly acquisition on record in the fourth quarter of 2025. Institutional investors, which include pensions and mutual funds, purchased $22.7 billion in federal bonds (net basis) on primary and secondary markets in the first quarter of 2026.
The federal government's net financial liabilities as a share of gross domestic product (GDP), which measures the value of nominal liabilities less financial assets at market value, ticked up to 33.2% in the first quarter of 2026. At the same time, the effective interest paid on federal government financial liabilities edged down to 2.68% (annual rates). Meanwhile, the ratio of net debt to GDP for other levels of government reached 16.9%, up from 15.6% in the fourth quarter of 2025, as they demanded $48.3 billion in bonds in the first quarter of 2026, the highest net issuance on record.
Total government gross debt per capita crossed the six-figure mark in the fourth quarter of 2025 and continued to rise, reaching $103,923 in the first quarter of 2026; by comparison, nominal GDP per capita stood at $80,092 in the first quarter of 2026.
Chart 5
Government net financial liabilities as a percentage of gross domestic product
Private non-financial corporations' borrowing and share redemptions
Private non-financial corporation's demand for funds was $17.1 billion in the first quarter of 2026. Borrowing was mostly in the form of bonds (+$17.6 billion), while listed share redemptions totalled $19.7 billion, fuelled partially by merger and acquisitions activity. This was the second-largest net redemption on record, only surpassed by that recorded in the second quarter of 2023.
Private non-financial corporations increased their non-mortgage loan liabilities by 3.5% over the past year, reaching $1,039.8 billion in the first quarter of 2026. The ratio of private non-financial corporations' credit market debt to GDP rose to 72.7% in the first quarter of 2026, reflecting greater leverage relative to economic output. Meanwhile, debt servicing pressure may be showing signs of easing, as private non-financial corporations' effective interest cost fell.
In the first quarter of 2026, the credit market debt-to-equity ratio (book value) of private non-financial corporations rose to 58.9%. In contrast, the debt-to-equity ratio (market value) declined to 62.2%, as equity valuations grew relative to corporate debt levels.
Chart 6
Demand for funds by private non-financial corporations
National net worth edges up even as international investment position weakens
In the first quarter of 2026, national net worth, the sum of national wealth and Canada's net foreign asset position, inched up to $19,190.7 billion. Canada's international investment position, the difference between its international financial assets and international liabilities, fell by $310.8 billion to $1,360.5 billion at the end of the first quarter of 2026, its lowest level since the third quarter of 2023. The first quarter of 2026 was the second consecutive quarter of significant decline. The revaluation effect resulting from market price changes (-$380.5 billion) significantly contributed to the decrease.
Canada's national wealth, defined as the total value of non-financial assets, increased by the largest margin (+$392.9 billion) since the first quarter of 2022. Rising energy and mineral prices resulted in a considerable jump in the value of Canada's subsoil asset reserves, which rose by 17.6% to $1.2 trillion in the first quarter of 2026.
Chart 7
Change in national net worth by component
Note to readers
Revisions
This release of the national balance sheet and financial flow accounts for the first quarter of 2026 includes revised estimates for the first quarter to the fourth quarter of 2025. 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 revisions from the third quarter of 2025 are available in "An overview of the revisions to the Financial and Wealth Accounts, 1999 to 2025."
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 2025 to the first quarter of 2026.
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 2025.
Unless otherwise stated, this release presents data unadjusted for seasonality.
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 2025 to the first quarter of 2026. 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.
Next release
Data on the national balance sheet and financial flow accounts for the second quarter of 2026 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 Seasonal adjustment: Concepts and interpretation, 2026.
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 socio-economic 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 36-10-0660-01, 36-10-0661-01, 36-10-0664-01 and 36-10-0665-01.
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 2025, technical methodology and quality report."
Products
The document, "An overview of the revisions to the Financial and Wealth Accounts, 1999 to 2025," 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).
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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