Canadian households took on more mortgage debt in late 2025 even as the value of their homes slipped.
New data from Statistics Canada show real estate values declined 0.7% in the fourth quarter of 2025, while mortgage debt climbed 4.2%. Overall household net worth still rose 5.3%, but that increase came entirely from financial assets, particularly equities, the report notes.
The increase in borrowing was broad-based, with mortgage debt rising across age groups. Households aged 55 to 64 recorded the fastest growth, up 6.0% from a year earlier.
More debt, softer housing backdrop
That leaves households with more mortgage debt, but less of a boost from rising home values, especially among lower-wealth households.
While the value of their real estate holdings rose modestly (+3.5%), mortgage costs jumped 7.5%, more than offsetting those gains.
Among younger households, net worth rose 5.7%, helped by gains in financial assets, while mortgage debt also increased.
Debt service ratios for younger households remain elevated, with interest payments accounting for about 10.5% of disposable income. On a broader measure that includes both principal and interest, households overall are spending closer to 14.6%.
At the other end, higher-wealth households saw the strongest gains in net worth, driven by financial markets rather than housing. Their mortgage debt rose just 0.7%, while financial assets posted double-digit gains.
Change in mortgage debt by age group
Report highlights
- Household net worth rose 5.3% year over year
- Financial assets rose 9.9%, accounting for the increase in net worth, while real estate values fell 0.7%
- Mortgage debt increased 4.2% overall, outpacing housing values
- Lower-wealth households saw mortgage costs jump 7.5%, offsetting modest gains in home values
- Mortgage debt among 55–64-year-olds rose 6.0%, the fastest of any age group
- Net worth among younger households rose 5.7%, driven by financial assets
- The top 20% hold 65.7% of total net worth, versus 3.0% for the bottom 40%
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Last modified: April 13, 2026