Net worth of Canadian families on the rise: Statistics Canada

The median net worth of Canadian families rose to $295,100 in 2016, a jump of nearly 15 per cent from four years ago, and almost double from 1999 when it stood at $144,500, Statistics Canada reports.

A family’s net worth is calculated by looking at how much money they would have if they sold off all their assets and paid off their debts.

Most of the gains in net worth were driven by increasing value of homes.

“Housing is both the largest asset and the largest debt for Canadians,” Statistics Canada said.

In 2016, 61.7 per cent of Canadian families reported a principal residence as an asset and 57.3 per cent of these families reported holding a mortgage on their principal residence, the federal data agency said.

Almost 30 per cent of Canadian families were debt-free in 2016. The share was highest among the seniors, where 58 per cent were debt-free. However, this was a significant decrease from 1999 when 72.6 per cent of seniors were debt-free.

Perhaps not surprisingly given the hot housing market in British Columbia it was the province that reported the highest median net worth in 2016 at $429,400. Families in Ontario reported the second-highest net worth at $365,700, followed by Manitoba at $320,800 and Saskatchewan at $293,500.

New Brunswick reported the lowest median net worth among the provinces at $158,400, and was the only province where the net worth actually declined.

Again driven by the price of real estate, Vancouver had the highest median net worth in 2016 at $434,400. Toronto families had the second-highest median net worth at $365,100, followed by Calgary at $339,400, Québec City at $335,100, Winnipeg at $287,800, Edmonton at $230,200 and Montreal at $170,000.

The Canadian’s mortgage debt also rose along with rising housing prices. Canadian families collectively owed $1.76 trillion in mortgages in 2016, an increase of 24.4 per cent from 2012 and 183.8 per cent higher compared with 1999.