Average debt levels edge up, while missed payments soar
Delinquency rates are on the rise in Canada, outpacing debt growth and signalling increasing financial stress among consumers, especially in provinces like Ontario, Alberta, and British Columbia.
The national delinquency rate jumped by 19.14% year-over-year to reach 1.43%, despite only a modest 3.79% increase in average non-mortgage debt, according to a new study by Money.ca. This suggests more Canadians are having trouble keeping up with their payments, even though overall borrowing isn’t surging.
The findings are based on data from Equifax Canada and other economic indicators. The report shows that younger and older age groups are particularly impacted, with rising inflation, high housing costs, and interest rates straining household finances.
Total consumer debt in Canada reached $2.56 trillion at the end of 2024, up 4.6% from 2023. A significant driver of this growth was non-bank auto lending, which climbed 11.7% year-over-year. Meanwhile, the average non-mortgage debt per consumer hit $21,931, now above pre-pandemic levels.
Read more: Ontario mortgage defaults surge as higher payments take a toll
Rebecca Oakes, vice president of advanced analytics at Equifax Canada, noted that although some Canadians are benefiting from slight rate relief, many, particularly mortgage holders in high-cost provinces, are feeling increased financial pressure.
Alberta reported the highest delinquency rate at 1.81%, following a 17.4% annual increase. Its average non-mortgage debt reached $24,555. Quebec, though experiencing the sharpest spike in delinquencies (24.2%), still maintains the lowest national rate at 1.04%. Newfoundland was the only province to record a drop in delinquencies, down 0.46% to 1.42%, despite having the highest average debt ($24,771).
“At first glance, the numbers are not concerning, but when we look deeper at a more granular level, many are feeling the strain of high living costs and mortgage renewals with higher payments, while other consumers are doing better and seeing financial improvements from lower interest rates and income growth,” Oakes said.
Debt burdens also vary by age. Canadians aged 56 to 65 had the largest increase in debt (6.28% year-over-year), now averaging $28,410. Delinquencies for this group rose nearly 17%. Among those aged 36 to 45, delinquency rates surged 24.4%, the highest of any age group. Their average debt stands at $26,984. Those aged 46 to 55 carry the most non-mortgage debt overall, at $34,317.
“Canadians across all regions and life stages are feeling the pinch,” the report stated. “The report urges financial institutions, policy-makers, and community organizations to prioritize financial literacy, accessible credit tools, and support systems to help Canadians regain stability.”
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