Homeownership among debtors continues to fall, vehicle ownership remains modest
Consumer insolvency filings in Canada surged to 137,295 in 2024, up from 90,092 in 2021, according to the Office of the Superintendent of Bankruptcy’s latest Canadian Consumer Debtor Profile report. The insolvency rate reached 4.2 per 1,000 adult Canadians, the highest level since 2019.
The typical debtor household reported a median monthly income of $3,089 while facing expenses of $3,264, creating a deficit of $175. By comparison, the general Canadian population had a median monthly household income of $7,050 as of 2023, according to Statistics Canada.
Household expenses have grown 19% since 2021, with transportation costs rising 33% and living expenses increasing 21%. The largest transportation expense increases occurred in Prince Edward Island, Manitoba, and the Territories.
Debtors held median total liabilities of $53,997 against median assets of $15,142, creating a net difference of $38,855. By contrast, the general population had median household assets of $680,200 and median debts of $100,000, resulting in a median net worth of $519,700.
Credit card debt affected 89% of debtors, with a median balance of $13,359. Bank loans were held by 57% of debtors at a median of $20,000, while 51% had finance company loans averaging $13,478.
Only 14% of debtors owned homes, down from 16% in 2021. Among homeowners, properties had a median value of $322,000 with mortgages of $248,000. Vehicle ownership stood at 64%, with a median value of $12,852.
Loss of income topped the list of reasons for financial difficulty, cited by 45% of debtors, down from 48% in 2021. Medical issues affected 20%, while relationship breakdowns accounted for 11%. Financial support of others and business failure were cited by 7% and 6%, respectively.
The average debtor was 46 years old with a household size of two people. Marital status broke down as 42% single, 37% married or common law, 18% divorced or separated, and 3% widowed. One-fifth of debtors had previously filed for bankruptcy.
Proposals made up 79% of total consumer insolvencies, while bankruptcies represented 21%, reflecting a shift from the 70-30 split observed in 2021.
