The national 90-day non-mortgage delinquency rate climbed, while total consumer debt rose
Canadian consumers entered the final quarter of 2025 under mounting financial pressure, with more than 1.45 million households missing a credit payment in the third quarter, according to Equifax Canada's latest market analysis.
The figure marked a troubling jump of 46,000 from the previous quarter and reflected a broader deterioration in payment discipline that now threatens to worsen during the holiday shopping season.
The national 90-day non-mortgage delinquency rate climbed to 1.63%, up 14% year-over-year, as total consumer debt reached $2.62 trillion.
"Earlier this year, we saw tentative signs of stabilization, however Q3 data indicated some renewed stress, especially in younger households and homeowners in urban centres," said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada.
Younger households bearing the brunt of financial pressure
Financial stress concentrated most heavily among younger Canadians. Consumers aged 18-35 reported the highest delinquency rates, with one in 20 missing a credit payment during the quarter.
Among 26-35-year-olds, the delinquency rate reached 2.45%, up 20.51% year-over-year, while those aged 18-25 saw their rate climb to 2.11%, up 16.58%, reflecting a generation struggling under elevated debt loads averaging $8,635 to $17,603 respectively.
Toronto emerged as a particular trouble spot among major cities, with a delinquency rate of 2.27%, up 19.58% annually. Vancouver and Ottawa followed with increases of 18.18 and 17.61% respectively.
Non-mortgage households bore the brunt of the problem: 84% of all missed payments occurred among non-mortgage borrowers.
Holiday spending could worsen the picture
Mortgage payment stress emerged as a key driver of the deteriorating numbers, with Oakes noting that "mortgage payment shock is still contributing to rising missed payments on credit cards, personal loans, and even on mortgages themselves."
As the holiday season approaches, industry data shows credit card spending typically rises between $300 and $500 per consumer, with missed card payments historically increasing roughly 7% by January.
Oakes noted that "spending over the next few weeks will be a decisive moment for many consumers in Canada."
While older consumers aged 46 and above showed some spending resilience, younger demographics displayed concerning patterns, with minimum-payment rates increasing among consumers under 35 in high-cost provinces including Ontario and British Columbia.
The average Canadian planned to spend $2,310 this holiday season, including $545 on travel and $517 on food and groceries, according to BMO’s Real Financial Progress Index.
“In the wake of recent tariff increases, rising unemployment, and an upturn in inflation, it’s not surprising that Canadian consumers are feeling a sense of trepidation heading into the holiday season,” Sal Guatieri, senior economist at BMO, said.
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