Thinking of applying for Canadian permanent residence? According to data from Environics Analytics, positive trends have been reported nationwide – growing stock portfolios, rising savings and a modest increase in mortgage debt – which means that this just might be the best time to consider Canadian residency.
As per data from Environics Analytics, the average net worth per Canadian household grew by 7.7% per cent to $442,130 last year.
It was also reported that the non-mortgage consumer debt was flat compared with 2012 while mortgage debt increased more slowly than the value of real estate or investments.
“Overall, 2013 was an excellent year for Canadian balance sheets. Many people benefited from the strong stock market. But they also saved more and didn’t take on more debt – preparing (perhaps) for a rainy day,” said Environics senior researcher Peter Miron.
The report was based on data from 121 financial and investment statistics from a number of sources, including Statistics Canada and the Bank of Canada.
According to the report, the disparities in wealth of households in the three richest cities of Canada – Toronto, Vancouver and Calgary – was increasingly diminishing. The average household net worth in these cities is reported to be within $29,718, or 4.4% of each other. Additionally, the average household has real estate holdings worth $533,172.
Ontario, Alberta and Nova Scotia had the highest growth in net worth among the provinces in 2013.
In Saskatchewan, household net worth rose by 7.4%, which was below the 7.7% national average. According to Environics, consumer debt in Saskatchewan increased by 7.6%, thereby partially offsetting a 9.1% increase in the value of liquid assets like investments.
“A lot of people moved to Saskatchewan to take advantage of the resource-based jobs and they sparked an economic boom,” said Miron. “But now the real estate market is starting to cool off while incomes are staying high. Taking on more debt is a belief in better days to come.”
The largest increase in net worth was reported in Oshawa, Halifax and Calgary, with household net worth growing by double digits – 11.2%, 10.9% and 10.6% respectively.
Environics said that these trends were not limited to few places only, rather the effect was felt across the country.
A robust stock market in Canada and the US implied that households enjoyed growth in liquid assets and took out more mortgages at the same rate that they’re paying it down.
Consumer debt from loans, credit cards, lines of credit remained unchanged from 2012.
In Nova Scotia, Prince Edward Island, New Brunswick and British Columbia, households paid down the most debt. Whereas in Newfoundland, Saskatchewan and Manitoba, the ratio of debt-to-disposable income increased.