Households underneath 35 had been the one age group to constantly decrease their mortgage debt all through 2024, in accordance with new Statistics Canada knowledge. Their common balances dropped 4.7% year-over-year in This fall, extending a development that started in late 2022.

It could appear counterintuitive that youthful households are decreasing their mortgage debt, however StatCan says the explanations for this development differ.

“Households within the youngest age group could also be decreasing their mortgage balances for numerous causes,” the company famous, akin to “turning away from the housing market because of affordability considerations, whereas current householders who bought a house when rates of interest had been a lot decrease from 2020 to 2022 could also be paying off their current mortgage debt balances or shifting into extra reasonably priced lodging.”

In some circumstances, youthful Canadians are additionally getting assist from household to handle the price of residing and scale back their debt.

In distinction, mortgage debt rose 7.7% amongst households aged 55–64 and eight.3% for these over 65. StatCan notes older householders could also be borrowing for funding properties, serving to youthful kinfolk with down funds, or funding different monetary objectives.

Change in common family mortgage debt by age group

Decrease charges shift the steadiness

The info present how Canada’s falling rate of interest setting in 2024 reshaped family funds. The Bank of Canada reduce its coverage charge from a peak of 5.00% to three.25% by December, serving to to sluggish the expansion in curiosity funds and ease debt servicing burdens.

Family curiosity funds rose by 9.0% in 2024—down sharply from 52.8% the 12 months prior. For the primary time in three years, the interest-only debt service ratio held regular throughout all age teams, together with youthful debtors, who are typically extra indebted.

Debt-to-income ratios additionally improved. The under-35 cohort noticed their ratio fall to 160.8%, down from 175.3%, whereas the 35–44 group nonetheless held the best debt load relative to earnings at 238.2%.

Wealth hole stabilizes as lower-income households catch a break

Decrease rates of interest, rebounding residence costs and slowing inflation helped a few of Canada’s least rich households construct internet price once more.

Households within the backside 40% of the wealth distribution elevated their internet price by 8.8% in This fall 2024—quicker than every other group—because of good points in each actual property values (+4.5%) and monetary belongings (+9.2%). In lots of circumstances, the worth of actual property owned rose greater than the rise in mortgage debt, reversing a development seen through the peak of charge hikes in 2022–2023.

The wealthiest 20% of households, by comparability, noticed no development in actual property values and relied solely on monetary markets for his or her 9.9% net-worth achieve.

Whereas the general wealth hole stays broad, with the highest 20% holding practically 65% of internet price, it didn’t widen in 2024, a notable shift from prior years.

Revenue inequality continues to rise—however extra slowly

StatCan additionally reported that Canada’s earnings hole widened for the fourth straight 12 months, pushed by sturdy funding good points for prime earners. Disposable earnings rose 5.9% for the highest 20%, in comparison with simply 3.6% for the underside 20%, who had been the one group to see wage losses.

Nonetheless, the speed of inequality development has slowed. The earnings hole rose simply 0.5 share factors in 2024, in comparison with two factors in each 2022 and 2023.

Center-income households fared greatest in lots of respects, with earnings good points of 5.4%—pushed by sturdy wage development. Additionally they improved their financial savings place by spending far lower than they earned.

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Final modified: April 14, 2025