According to a report released December 7, 2017 by Statistics Canada median family net worth was $295,100.00 up 14.7% from 2012 and more than double from 1999.
The above notwithstanding, we suspect as a collection agency operating in Edmonton, Calgary and the GTA we will continue to have our work cut out for us.
The Survey of Financial Security marks the first time since 2012 that the data agency has taken an exhaustive look at the financial lives of Canadians. A person or family’s net worth is calculated by how much they would have left if they sold off all of their assets and paid off all of their debts. The lion’s share of the gains in Canadian’s net worth has come from real estate. Statistics Canada notes: “Housing is both the largest asset and the largest debt for Canadians.”
Additionally, Statistics Canada indicated in December that household credit market debt as a proportion of household disposable income increased to 171.1 per cent in Q3-2017, up from 170.1 per cent in the second quarter. That means there was $1.71 in credit market debt, which includes consumer credit and mortgage and non-mortgage loans, for every dollar of household disposable income. This amount Canadians owe relative to their income is an all-time new record high.
With homebuyers rushing to get into the market ahead of the new OSFI rule change that takes effect on Jan. 1, 2018, we will likely see a further increases in credit market debt ratios for Q4.