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The heritage of the Canadians down for the first time in ten years



September 20, 2019 09:30

Photo : Freepik

After nearly a decade of accumulation, the net worth of canadian households the means decreased slightly in 2018, from 1.1 %, which is equivalent to 7 594 $, 678,792 by the end of the year.

Although the value of the property national real estate has continued to rise, recording an increase of 1.6 %, or 6 336 $ $ during the year, these gains were offset by the significant decline in equity markets experienced at the end of 2018.

The report WealthScapes of the firm Environics Analytics has revealed that the investment portfolios overall have fallen by 7.3% over the year, reaching 181 231 $. The traditional bank deposits increased by 4.4% to reach 100 212 $, while the higher interest rates have also encouraged investors to purchase GICS and term deposits. They jumped 10.3% during the year to reach 41 645 $. The average value of real estate held by Canadians has increased by 1.6 % to $ 393 789 $ in 2018.

Household debt on the rise

At the same time, the level of household debt has also increased by 2.3 %, while higher interest rates have reduced the value of employer retirement pension schemes from lows of $ 576, or 0.4 %.

At the provincial level, British Columbia remains the wealthiest province in the country, with a savings rate more than five times higher than the national average. The average debt per household was reduced in 2018 to Newfoundland and Labrador, Nova Scotia, Saskatchewan and Alberta. Alberta and Saskatchewan had the largest declines in average net worth per household during the year, which decreased by 4.1% and 2.9% in 2018.

“Collectively, the assets of canadian households dropped by 0.5% in 2018 to reach 825 484 $, writes Environics. This downward pressure on the net worth of households was further aggravated by the growing indebtedness of households, which increased by 2.3% to $ 146 693 $. The growth of the debt has been equally divided between the debt to consumption, 2.2% rise to 41 962 $ and mortgage debt, up from 2.4% to 104 731 $. “

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