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Monday, January 25, 2010

Canadian Mortgage Broker News - Household net worth rises nationally

Canadian Mortgage Broker News - Household net worth rises nationally

Household net worth rises nationally


Canadian household net worth rose 2.3 per cent in the third quarter, boosted by stock market and property gains.

The figures, which calculate the value of families' assets such as real estate and savings accounts minus liability, were released today by Statistics Canada. Overall household net worth totaled $5.7 trillion, up $127 billion from the previous quarter.

Statistics Canada highlighted the 10 per cent gain in Standard and Poor's composite index, adding significantly to net worth gains. Sinking mortgage rates and an increase in existing home sales and renovations has also contributed as mortgage demand remains strong.

But along side that, the ratio of household debt to income rose to a record 145 per cent, up 2 percentage points, as Canadians have taken on more debt.

Last week, the Bank of Canada warned that rising household debt, coupled with growing government debt, could set back the national recovery.