Canadian household wealth increased in the second quarter, with financial assets providing most of the gain, according to September 11 analysis of the national balance-sheet release by Desjardins. It also reports a lower aggregate debt-service ratio, around 14.5%. Neither measure means that every household has more cash available for a mortgage renewal: assets and income are different resources.
Wealth can rise without arriving in a chequing account
Net worth is the value of assets minus liabilities. A higher share portfolio or estimated home value can increase it without changing monthly pay. The debt-service ratio measures the portion of disposable income going to required debt payments. A national average combines households with very different loan terms, incomes and renewal dates.
Build a renewal budget from your own statements
If a hypothetical household's monthly mortgage payment rises by C$300, it needs C$3,600 more over a year. An unrealised gain of C$10,000 on its home does not automatically fund that gap. Compare the lender's renewal offer with alternatives for the same outstanding balance and amortisation, including any transfer or discharge costs.
Keep property tax, insurance and maintenance outside the mortgage line so they are not forgotten. Check whether a lower proposed payment comes from a lower rate or a longer repayment schedule. The balance-sheet release helps explain the economy; a sustainable renewal still depends on the cash your household can actually retain each month.