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Average Debt by Age in Canada 2026: Compare Your Debt Load

Updated

How does your debt compare to other Canadians your age? Whether you’re carrying a mortgage, paying off student loans, or managing credit card balances, understanding average debt levels helps you assess where you stand financially. This guide breaks down total debt by age group, debt types, and provinces using Canadian financial data. See how your debt-to-income ratio compares and when you should be concerned.

Average Total Debt by Age Group (2026)

Age Group Average Total Debt Median Total Debt % With Any Debt
18-25 $16,800 $8,200 62%
26-35 $74,200 $42,500 79%
36-45 $138,500 $112,000 84%
46-55 $108,400 $78,200 76%
56-65 $78,200 $45,600 64%
65+ $31,400 $8,500 47%
All ages $78,600 $38,400 70%

Total debt includes mortgages, HELOCs, credit cards, auto loans, student loans, and other consumer debt. Source: Equifax Canada, Statistics Canada.

Debt Composition by Age

Ages 18-25: Starting Out

Debt Type Average Amount % With This Debt
Student loans $12,400 42%
Credit cards $2,100 48%
Auto loans $8,200 18%
Other consumer $1,800 22%
Mortgage $4,200* 4%
Total $16,800 62%

*Mortgage average among those with mortgages is much higher; low overall average reflects few homeowners at this age.

Ages 26-35: Building Phase

Debt Type Average Amount % With This Debt
Mortgage $48,500 35%
Student loans $18,500 38%
Auto loans $12,400 42%
Credit cards $4,800 65%
HELOC $6,200 18%
Other consumer $3,800 28%
Total $74,200 79%

Ages 36-45: Peak Debt Years

Debt Type Average Amount % With This Debt
Mortgage $98,400 52%
HELOC $18,600 32%
Auto loans $14,200 48%
Credit cards $5,400 68%
Student loans $8,200 18%
Other consumer $4,800 25%
Total $138,500 84%

This age group carries the highest average debt, driven primarily by mortgages.

Ages 46-55: Paying Down

Debt Type Average Amount % With This Debt
Mortgage $72,400 48%
HELOC $22,100 35%
Auto loans $11,800 45%
Credit cards $4,900 62%
Other consumer $4,200 22%
Total $108,400 76%

HELOC balances often peak here as homeowners access equity.

Ages 56-65: Pre-Retirement

Debt Type Average Amount % With This Debt
Mortgage $52,100 38%
HELOC $18,400 28%
Auto loans $8,600 38%
Credit cards $3,800 55%
Other consumer $3,200 18%
Total $78,200 64%

Ages 65+: Retirement

Debt Type Average Amount % With This Debt
Mortgage $18,200 22%
HELOC $8,400 18%
Auto loans $4,200 24%
Credit cards $2,600 42%
Other consumer $1,800 12%
Total $31,400 47%

More than half of those 65+ are completely debt-free.

Mortgage Debt by Age

Age Group Avg Mortgage (Holders Only) % With Mortgage Avg Home Equity
18-25 $385,000 4% $68,000
26-35 $425,000 35% $85,000
36-45 $398,000 52% $145,000
46-55 $285,000 48% $285,000
56-65 $198,000 38% $425,000
65+ $125,000 22% $520,000

Mortgage balances are lower in later years due to repayment and older purchase prices.

Consumer Debt by Age

Consumer debt includes all non-mortgage debt: credit cards, auto loans, lines of credit, student loans, and other loans.

Age Group Average Consumer Debt Median Consumer Debt
18-25 $14,200 $6,800
26-35 $28,500 $18,400
36-45 $32,800 $22,100
46-55 $28,400 $18,600
56-65 $22,500 $12,400
65+ $12,400 $4,200
All ages $24,200 $14,500

Credit Card Debt

Average Balance by Age

Age Group Avg Balance (All) Avg Balance (Revolvers*) % Who Revolve
18-25 $2,100 $4,200 42%
26-35 $4,800 $7,800 48%
36-45 $5,400 $8,600 52%
46-55 $4,900 $8,200 45%
56-65 $3,800 $6,800 38%
65+ $2,600 $5,200 32%

*“Revolvers” carry a balance month-to-month rather than paying in full.

Credit Card Interest Costs

Balance Monthly Interest (21% APR) Annual Interest
$2,000 $35 $420
$5,000 $88 $1,050
$10,000 $175 $2,100
$20,000 $350 $4,200

Student Loan Debt

Category Amount
Average at graduation (2026) $28,000-32,000
Average balance, ages 25-34 $18,500
Median balance, ages 25-34 $14,200
% of 25-34 with student loans 38%
% of 35-44 with student loans 18%

Repayment Timeline

Strategy Years to Repay $28,000
Minimum payments (~$300/mo) 12-15 years
Aggressive ($500/mo) 5-6 years
Very aggressive ($800/mo) 3-4 years

Auto Loan Debt

Age Group Avg Auto Loan % With Auto Loan Avg Vehicle Price
18-25 $18,500 18% $28,000
26-35 $26,200 42% $42,000
36-45 $28,500 48% $48,000
46-55 $24,800 45% $46,000
56-65 $21,400 38% $42,000
65+ $16,200 24% $35,000

The average auto loan in Canada is $26,400 with a term of 72 months (6 years).

Debt-to-Income Ratios

Average Debt-to-Income by Age

Age Group Debt-to-Income Ratio Assessment
18-25 75% Low (limited income)
26-35 126% Moderate
36-45 192% High (mortgage-driven)
46-55 142% Moderate-high
56-65 115% Moderate
65+ 69% Low
All ages 181% High (historically)

What’s a Healthy Ratio?

Debt-to-Income Assessment Notes
Under 100% Excellent Manageable for most incomes
100-150% Good Typical for homeowners
150-200% Fair Monitor carefully
200-250% Elevated Prioritize debt repayment
250%+ Concerning Significant financial risk

Total Debt Service Ratio (TDS)

Component Guideline
Housing costs Max 35% of gross income (GDS)
+ All other debt payments Max 44% of gross income (TDS)

Lenders use these ratios to qualify mortgages and loans.

Debt by Province

Total Debt Per Capita

Province Avg Total Debt Avg Consumer Debt Mortgage %
British Columbia $98,400 $28,600 71%
Ontario $92,100 $26,200 72%
Alberta $84,500 $32,400 62%
Quebec $58,200 $18,400 68%
Saskatchewan $62,400 $24,800 60%
Manitoba $54,600 $21,200 61%
Nova Scotia $52,100 $22,400 57%
New Brunswick $48,500 $20,600 58%
Newfoundland $46,200 $21,800 53%
PEI $44,800 $19,400 57%
Canada $78,600 $24,200 69%

BC and Ontario have highest total debt (expensive housing), Alberta has highest consumer debt per capita.

Good Debt vs Bad Debt

Good Debt Characteristics

Aspect Good Debt
Interest rate Low (often below 6%)
Purpose Builds assets or increases earning potential
Tax treatment Often deductible
Examples Mortgage, student loans, business investment
Typical terms Long-term, fixed payments

Bad Debt Characteristics

Aspect Bad Debt
Interest rate High (15-30%)
Purpose Consumption, depreciating assets
Tax treatment Not deductible
Examples Credit cards, payday loans, store financing
Typical terms Revolving or short-term

Debt Hierarchy

Priority Debt Type Typical Rate Pay Off
1 Payday loans 300-500%+ Immediately
2 Credit cards 19-29% ASAP
3 Store credit 25-30% ASAP
4 Personal loans 8-15% Steadily
5 Auto loans 5-10% Per schedule
6 Student loans 5-8% Per schedule
7 HELOC 6-8% Per strategy
8 Mortgage 4-7% Per schedule

Debt-Free Canadians by Age

Age Group % Completely Debt-Free % No Consumer Debt
18-25 38% 52%
26-35 21% 35%
36-45 16% 28%
46-55 24% 38%
56-65 36% 52%
65+ 53% 68%
All ages 30% 42%

Warning Signs of Too Much Debt

Warning Sign Details
Minimum payments only Can only afford minimum on credit cards
Using credit for basics Paying for groceries, utilities on credit
Over credit limit Regularly hitting or exceeding limits
Missed payments Late or skipped payments
Debt rising despite payments Balance not decreasing
Denied new credit Rejected for loans or cards
Hiding debt Not telling spouse/partner
Losing sleep Stress impacting health

Improving Your Debt Position

Debt Repayment Strategies

Strategy Description Best For
Avalanche Pay highest-interest first Minimizing total interest
Snowball Pay smallest balance first Psychological wins
Consolidation Combine debts into lower rate Multiple high-rate debts
Balance transfer Move to 0% promo card Credit card debt

Quick Wins

Action Impact
Negotiate lower rates Call and ask — often works
Automate payments Avoid late fees
Biweekly mortgage Extra payment per year
Round up Pay $500 instead of $467
Windfalls to debt Tax refund, bonus → debt

How Your Debt Compares to Net Worth

Age Group Avg Debt Avg Net Worth Debt % of Net Worth
18-25 $16,800 $24,000 70%
26-35 $74,200 $138,000 54%
36-45 $138,500 $365,000 38%
46-55 $108,400 $592,000 18%
56-65 $78,200 $845,000 9%
65+ $31,400 $928,000 3%

As you age, debt should shrink as a percentage of net worth.