Canadians assumed $215 billion of additional debt between 1999 and 2005, the bulk of which was funnelled into real estate, according to Statistics Canada. (Patti Edgar/CBC)

Surging real estate values and a strong economy helped drive up the number of millionaire families in Canada to 1.1 million in 2005, according to a Statistics Canada report released Monday.

The proportion of families with a net worth of $1 million or more rose to nine per cent in 2005 from five per cent in 1999. The number of millionaire baby boomers in their 50s jumped to16 per cent from six per cent, and among Canadians in their 40s rose to nine per cent from two per cent.

The federal agency also noted its taking less time for the major income recipient in a family to reach millionaire status, with the median age falling from 58.2 to 56.9 in 2005.

"On average, millionaire families held 10 times more wealth than non-millionaires [$1.9 million versus $190,000 in 1999 and $2.1 million versus $222,000 in 2005]," the report said.

"While non-millionaires derived most of their wealth from home equity and an employer pension plan, millionaires' wealth came mostly from net financial assets, followed by business and home equity."

A growing number of millionaire families also reported carrying debt, rising from 51 per cent in 1999 to 58 per cent in 2005. By comparison, 71 per cent of non-millionaire families carried debt in 2005, up from 68 per cent in 1999.

Average debt $82,500 per family

Canadians assumed $215 billion of additional debt during the same time period, the bulk of which was funnelled into real estate purchases, the federal agency said. Average debt climbed from $62,700 per family in 1999 to $82,500 in 2006, while family income rates increased moderately from $61,600 to $68,100.

But, the study also noted Canadians improved their wealth by $1,386 billion, with the family home ranking as the top major asset for Canadian families.

"In fact, by 2005, home equity and employer pension plans constituted over one-half of total wealth for families in their 50s, 60s, 70s or 80s. Rising real estate values pushed up home equity, and the appreciation in home value, as a proportion of home equity increased in importance for older owners," said the report.

Canadians assumed $215 billion of additional debt during the same time period, but improved their wealth by $1,386 billion. According to the report, 134,000 fewer families were entirely dependent on government transfers including employment insurance, pension plan benefits and social assistance.

Statistics Canada surveyed Canadians about 18 financial assets, including bank accounts, stocks, mutual funds and RRSPs.