Canada was richer overall at the end of the second quarter, says Statistics Canada. The country’s national wealth — the value of non-financial assets in the Canadian economy — edged up 0.1%, and the value of Canada’s international financial assets continued to exceed liabilities (as of Q2, Canada’s net foreign asset position rose by $25.7 billion to $271.5 billion, a fourth consecutive quarterly advance).

But there are issues.

For example, says Statistics Canada, “Household residential real estate grew by $4.5 billion, the smallest increase since the first quarter of 2009 […].” The agency points to “lower real estate prices and less activity in the resale market,” due in part to changes implemented by the Government of Ontario to dampen housing market growth.

Read: Rate hikes don’t demand fixed-rate mortgages

And even though household net worth dipped but remained stable over the same period, Canadians continue to borrow without upping the debt servicing ratio. Statistics Canada says non-financial assets grew at a faster pace (+0.3%) than financial assets in the second quarter (+0.1%), but that total financial liabilities increased 1.9% over the same period.

Read: How growing household debt levels are putting Canada at risk

Household credit market debt as a proportion of household disposable income increased to 167.8%, up from 166.6% in the first quarter. At the same time, household income (+1.2%) rose at a slower pace. As a result, says Statistics Canada, “[…] there was $1.68 in credit market debt for every dollar of household disposable income.”

Read: Clients can’t find money to save: survey

Total household credit market debt includes consumer credit, mortgage and non-mortgage loans, and totalled nearly $2.08 trillion in the second quarter. Mortgage debt increased 1.6% to $1.36 trillion, while consumer credit grew 2.4% to $609.6 billion.

Also read:

What Canada’s hot streak means for interest rates

How full employment affects wages and the economy

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