Canadian households’ wealth grew by $230 billion in the fourth quarter of 2025, ending the year at $18.6 trillion — adding more than $1 trillion (5.8%) in wealth for the year, according to Statistics Canada.
Appreciating financial assets, which grew 10.5% year-over-year, spurred the wealth growth. The S&P/TSX Composite Index increased by 5.6% in the fourth quarter of 2025, closing out the year 28.2% higher than its 2024 year-end level, the largest annual increase since 2009.
However, non-financial assets fell for a second consecutive quarter in the fourth quarter as real estate values continued to decline. This helped the ratio of financial to non-financial assets climb to 120.7%, the highest point in over two decades.
At the same time, the seasonally adjusted household savings rate fell 0.3 percentage points to 4.4% in the last quarter of 2025. Disposable income growth (0.6%) lagged behind growth in nominal household spending (1.2%).
Canadians reinvested earnings to buy more mutual funds, with a record quarterly net acquisition of $96.2 billion in the fourth quarter. Households also added $22.3 billion in currency and deposits.
At the end of 2025, our national net worth was $19.3 trillion. Canada’s national wealth was up $88.3 billion in the fourth quarter, buoyed by an increase in natural resources values. The value of metallic and non-metallic mineral reserves rose to $614.8 billion in the fourth quarter from $502.9 billion in the third quarter, mainly from strong commodity price growth.
Household borrowing slows
The household debt service ratio, or total payments of principal and interest on credit market debt as a proportion of household disposable income, edged slightly lower in the fourth quarter to 14.57% from 14.61% in the third quarter.
Mortgage interest payments declined 0.6% and obligated mortgage principal payments rose 1%. The effective interest cost of both mortgage (4.2% annually) and non-mortgage loans (8.4% annually) eased in the fourth quarter.
Higher demand for mortgages resulted in a total of $110.6 billion in household mortgage borrowing last year, up from $94 billion in 2024. At the same time, demand for non-mortgage debt eased, with total borrowing of $30.7 billion in 2025 compared with $43.5 billion the year prior. Consumer credit demand fell 23.7%.