Average Household Debt in Canada
| Metric |
Amount |
| Average household debt (total) |
~$185,000 |
| Average mortgage debt |
~$160,000 |
| Average non-mortgage debt |
~$22,000 |
| Debt-to-income ratio |
~180% |
| Total Canadian household debt |
$2.4+ trillion |
Household Debt Breakdown
By Debt Type
| Type of Debt |
Average Amount |
% of Total |
| Mortgage |
$160,000 |
73% |
| HELOC |
$15,000 |
7% |
| Auto loans |
$12,000 |
5.5% |
| Credit cards |
$4,200 |
2% |
| Student loans |
$3,500 |
1.5% |
| Personal loans |
$8,000 |
4% |
| Lines of credit |
$15,000 |
7% |
Mortgage vs Non-Mortgage
| Category |
Total Outstanding |
Per Household (with debt) |
| Mortgage debt |
$1.8 trillion |
~$350,000 |
| Consumer debt |
$600+ billion |
~$23,000 |
The majority of household debt is mortgage debt secured by home equity.
Average Debt by Age
| Age Group |
Total Debt |
Mortgage |
Non-Mortgage |
| 18–24 |
$15,000 |
$5,000 |
$10,000 |
| 25–34 |
$145,000 |
$120,000 |
$25,000 |
| 35–44 |
$230,000 |
$200,000 |
$30,000 |
| 45–54 |
$210,000 |
$170,000 |
$40,000 |
| 55–64 |
$135,000 |
$100,000 |
$35,000 |
| 65+ |
$55,000 |
$35,000 |
$20,000 |
Debt Lifecycle Pattern
| Stage |
Age |
Typical Debt Profile |
| Education |
18–24 |
Student loans, first credit card |
| Career start |
25–34 |
First mortgage, auto loan |
| Peak debt |
35–44 |
Largest mortgage, family expenses |
| Debt paydown |
45–54 |
Mortgage reduction, may still be high |
| Pre-retirement |
55–64 |
Accelerated paydown |
| Retirement |
65+ |
Should be minimal |
Average Debt by Province
| Province |
Average Household Debt |
Debt-to-Income |
| British Columbia |
$220,000 |
205% |
| Ontario |
$215,000 |
195% |
| Alberta |
$165,000 |
175% |
| Quebec |
$120,000 |
155% |
| Manitoba |
$110,000 |
150% |
| Saskatchewan |
$125,000 |
160% |
| Nova Scotia |
$105,000 |
160% |
| New Brunswick |
$95,000 |
155% |
| Newfoundland |
$90,000 |
150% |
| PEI |
$100,000 |
155% |
BC and Ontario have higher debt due to expensive housing markets.
Credit Card Debt Statistics
| Metric |
Value |
| Average balance (all cardholders) |
$2,100 |
| Average balance (carrying balance) |
$4,200 |
| % who carry a balance |
~40% |
| Average interest rate |
19–22% |
| Total credit card debt |
$100+ billion |
Credit Card Debt by Age
| Age Group |
Average Balance |
| 18–24 |
$1,800 |
| 25–34 |
$3,500 |
| 35–44 |
$5,200 |
| 45–54 |
$5,800 |
| 55–64 |
$4,500 |
| 65+ |
$3,200 |
Peak credit card debt is typically in the 45–54 age range.
Student Loan Debt
| Metric |
Value |
| Average student debt at graduation |
$28,000 |
| Median student debt |
$17,500 |
| Average debt (Bachelor’s) |
$24,000 |
| Average debt (Graduate) |
$38,000 |
| Total student debt in Canada |
$20+ billion |
Federal student loan interest rate (2026): Prime + 0% (effectively prime rate).
Auto Loan Debt
| Metric |
Value |
| Average auto loan |
$35,000 |
| Average monthly payment |
$650 |
| Average loan term |
72 months |
| Total auto debt |
$120+ billion |
Auto Debt by Province
| Province |
Average Auto Debt |
| Alberta |
$42,000 |
| Ontario |
$38,000 |
| British Columbia |
$36,000 |
| Quebec |
$28,000 |
| Prairie provinces |
$35,000 |
| Atlantic provinces |
$25,000 |
Albertans carry the highest auto debt on average.
HELOC and Line of Credit Debt
| Type |
Average Balance |
Average Limit |
| HELOC |
$65,000 |
$150,000 |
| Personal line of credit |
$12,000 |
$25,000 |
Many Canadians use HELOCs as emergency funds or for major expenses.
Canada’s Debt-to-Income Ratio
Historical Trend
| Year |
Debt-to-Income Ratio |
| 2000 |
110% |
| 2008 |
150% |
| 2015 |
165% |
| 2020 |
175% |
| 2026 |
~180% |
International Comparison
| Country |
Household Debt-to-Income |
| Switzerland |
220% |
| Australia |
200% |
| Canada |
180% |
| Norway |
175% |
| UK |
145% |
| USA |
100% |
| Germany |
85% |
Canada has high household debt relative to income, though much is secured by home equity.
Are Canadians Overleveraged?
Concerning Signs
| Indicator |
Status |
| Debt-to-income |
Near record highs |
| Interest rate sensitivity |
High — many variable mortgages |
| Home price dependence |
Debt backed by volatile asset |
| Consumer debt growth |
Outpacing income growth |
Mitigating Factors
| Factor |
Impact |
| Home equity |
Debt backed by substantial assets |
| Mortgage quality |
Most mortgages are performing |
| Employment |
Low unemployment supports debt service |
| Net worth |
Canadians’ assets exceed liabilities |
Debt Payment Burden
How Much Income Goes to Debt
| Debt Type |
Avg Monthly Payment |
As % of Income |
| Mortgage |
$2,100 |
30–35% |
| Auto loan |
$650 |
10–12% |
| Credit cards (min) |
$125 |
2–3% |
| Total debt service |
$3,000–$3,500 |
45–50% |
Many Canadian households spend more than the recommended 40% of gross income on debt payments.
How to Reduce Your Debt
Short-Term Strategies
| Strategy |
Impact |
| Debt avalanche |
Pay highest interest first |
| Debt snowball |
Pay smallest balance first (motivation) |
| Balance transfer |
0% promo rates reduce interest |
| Negotiate rates |
Call card issuers |
Long-Term Approaches
| Approach |
Best For |
| Accelerate mortgage payments |
Building equity |
| RRSP refund to debt |
Tax-efficient paydown |
| Consolidation loan |
Lower interest rate |
| Consumer proposal |
Unmanageable debt |
Warning Signs of Too Much Debt
| Sign |
Action Needed |
| Can’t pay minimums |
Seek credit counselling |
| Using credit for basics |
Budget review urgently |
| Debt-to-income over 40% |
Reduce debt or increase income |
| No emergency fund |
Build 3–6 months expenses |
| Stress over debt |
Free counselling available |
Where to Get Help
| Resource |
Service |
| Credit Counselling Canada |
Free debt advice |
| Licensed Insolvency Trustee |
Consumer proposals, bankruptcy |
| Financial Consumer Agency |
Information and resources |
| 211 Canada |
Local financial help referrals |
Key Statistics Summary
| Metric |
Canada 2026 |
| Total household debt |
$2.4+ trillion |
| Average household debt |
~$185,000 |
| Debt-to-income ratio |
~180% |
| Average credit card debt |
$4,200 |
| Average mortgage |
$350,000 (those with mortgages) |
| % with no debt |
~25% of households |
Data sources: Statistics Canada, Bank of Canada, Equifax Canada
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