Changes in the assets and debts of Quebeckers

Do you know what assets Quebeckers have and what methods they use to borrow? This part of our analysis explored the assets and liabilities of Quebeckers from 1999 to 2005. Assets include private pension assets and other financial assets, non-financial assets and equity in a business. Liabilities include mortgage loans, lines of credit, credit cards and instalment credit, student loans, car loans and other debts.

Assets on the move

The total value of all assets, in 2005 dollars, increased 29% from 1999 to 2005. This growth was driven mainly by higher real estate values. Private pension assets, employer-sponsored pension plan plans in particular, also played a large role.

Diverse assets

In 2005, 7 out of 10 households* had pension assets, up slightly since 1999. Nearly 9 out of 10 households had other financial assets, a figure that did not really change. The vast majority had savings with financial institutions.

All households stated that they had non-financial assets. This was not surprising as people generally have some movable property. Just over half of households owned a home, virtually the same number as in 1999. In addition, 7 out of 10 households had at least one motor vehicle.

More assets, more debt

Total debts kept pace with total assets, rising around 30% from 1999 to 2005. The number of households with debt rose slightly. Mortgages on a principal residence accounted for 57% of the debt increase. The other sources of increase were car loans and lines of credit, followed by credit cards and instalment credit as well as mortgages on other real estate assets.

The debt-to-asset ratio did not change much during the period in question, with around 11,75 $ in debt for every 100 $ in assets. 

Properties that pinch the pocketbook

Mortgages continued to be the biggest debt. Since the value of homes shot up between 1999 and 2005, the total size of mortgage loans increased accordingly.

Conclusion

Three conclusions can be drawn from the changes in assets and debts from 1999 to 2005.

• The assets and debts of Quebeckers increased by around 30%. Consequently, the net worth of their assets (total assets less total debts) increased by the same amount.
• Residences contributed the most to the increase in assets (their value rose) and debts (the size of mortgages rose).
• The percentage of households covered by an employer-sponsored pension plan increased markedly, from 46% to 51%, between 1999 and 2005.

 

* A household is an economic family composed of two or more persons who live in the same dwelling and are related to each other by blood, marriage, common law or adoption, or a person living alone or with other individuals to whom he or she is not related.