Canada household debt overview
Canada has one of the highest household debt levels in the developed world. Here are the key figures for 2025-2026.
| Metric | Value | Source |
|---|---|---|
| Total household debt | $2.9 trillion | Bank of Canada |
| Household debt-to-disposable-income | 177% | Statistics Canada |
| Household debt-to-GDP | 102% | Bank of Canada |
| Average debt per consumer | $73,500 | Equifax |
| Average non-mortgage debt per consumer | $21,800 | Equifax |
| Mortgage debt share of total | 73% | Bank of Canada |
| Insolvency filings (2025) | ~138,000 | OSB |
| Delinquency rate (90+ days) | 1.2% | Equifax |
Figures as of Q3/Q4 2025. Consumer debt figures are per credit-active individual. Household figures include all members.
Average debt by type
| Debt Type | Average Balance (per holder) | Total Outstanding | Share of Total Debt |
|---|---|---|---|
| Mortgage | $320,000 | $2.12 trillion | 73% |
| Home equity line of credit (HELOC) | $73,000 | $310 billion | 10.5% |
| Auto loan | $25,200 | $215 billion | 7.4% |
| Credit card | $4,200 | $107 billion | 3.7% |
| Personal line of credit | $32,500 | $95 billion | 3.3% |
| Student loan | $15,300 | $42 billion | 1.4% |
| Other consumer | — | $21 billion | 0.7% |
| Total | — | $2.9 trillion | 100% |
Source: Bank of Canada, Equifax Canada. “Average balance per holder” includes only those who hold that type of debt.
Debt-to-income ratio trend
Canada’s household debt-to-disposable-income ratio has been among the highest in the developed world for over a decade.
| Year | Debt-to-Income Ratio | Context |
|---|---|---|
| 2010 | 161% | Recovery from financial crisis |
| 2012 | 164% | Housing boom begins |
| 2014 | 165% | Low interest rate environment |
| 2016 | 171% | Toronto/Vancouver housing surge |
| 2018 | 175% | Post-stress test cooling |
| 2019 | 176% | Stable growth |
| 2020 | 170% | Pandemic savings reduce ratio |
| 2021 | 180% | Pandemic housing boom |
| 2022 | 186% | Peak — rate hikes begin |
| 2023 | 182% | High rates slow borrowing |
| 2024 | 179% | Gradual deleveraging |
| 2025 | 177% | Rate cuts ease pressure |
Source: Statistics Canada, National Balance Sheet Accounts.
The ratio peaked in early 2022 as Canadians took on large mortgages during the pandemic housing boom. Since then, rising incomes and slower credit growth have brought the ratio down slowly.
International comparison
| Country | Household Debt-to-Income | Household Debt-to-GDP |
|---|---|---|
| Canada | 177% | 102% |
| Australia | 186% | 119% |
| South Korea | 196% | 105% |
| Sweden | 188% | 89% |
| United Kingdom | 135% | 84% |
| United States | 100% | 73% |
| Germany | 93% | 54% |
| France | 110% | 67% |
| Japan | 115% | 65% |
Sources: BIS, central bank data, 2024-2025 figures. Definitions may vary slightly between countries.
Canada ranks among the most indebted households globally. The high figure is almost entirely explained by the size of Canadian mortgage debt relative to incomes — a function of expensive housing markets in Toronto, Vancouver, and other major cities.
Average debt by age group
Debt levels rise through peak earning and home-buying years, then decline approaching retirement.
| Age Group | Average Total Debt | Average Non-Mortgage Debt | Mortgage Holders (%) |
|---|---|---|---|
| 18–25 | $18,000 | $9,500 | 8% |
| 26–35 | $120,000 | $17,200 | 42% |
| 36–45 | $255,000 | $22,800 | 58% |
| 46–55 | $225,000 | $23,500 | 51% |
| 56–65 | $155,000 | $19,000 | 35% |
| 65+ | $72,000 | $12,500 | 18% |
Source: Statistics Canada Survey of Financial Security, Equifax. Figures are per individual with active credit.
Key observations:
- 26-35: Debt surges as this group takes on first mortgages. Student loan balances also peak here.
- 36-45: Highest total debt — maximum mortgage balances plus auto loans and lines of credit. This is also peak consumer spending.
- 56-65: Debt declines as mortgages are paid down. However, the share of 55+ Canadians carrying mortgage debt into retirement has been rising.
- 65+: A growing concern — 18% of seniors still carry mortgage debt, up from 10% a decade ago.
Average debt by province
| Province | Average Debt per Consumer | Average Mortgage (holders) | Non-Mortgage Debt |
|---|---|---|---|
| British Columbia | $95,500 | $410,000 | $24,300 |
| Ontario | $86,200 | $355,000 | $22,400 |
| Alberta | $81,000 | $310,000 | $25,600 |
| Saskatchewan | $59,500 | $225,000 | $21,800 |
| Manitoba | $51,200 | $215,000 | $18,500 |
| Quebec | $48,800 | $220,000 | $17,600 |
| Nova Scotia | $49,200 | $220,000 | $18,900 |
| New Brunswick | $44,500 | $180,000 | $17,200 |
| Newfoundland & Labrador | $42,800 | $190,000 | $17,800 |
| Prince Edward Island | $43,100 | $200,000 | $16,900 |
Source: Equifax Canada, Q3 2025.
British Columbia has the highest debt per consumer, driven by Vancouver’s expensive housing market. Alberta has notably high non-mortgage debt — partly due to higher incomes supporting larger auto loans and lines of credit.
Credit card debt in Canada
| Metric | Value |
|---|---|
| Total credit card debt outstanding | $107 billion |
| Average balance per cardholder | $4,200 |
| Percentage carrying a balance | 45% |
| Average interest rate | 20.99% |
| Average minimum payment (on $4,200) | $84/month |
| Time to pay off at minimum (20.99%) | 40+ years |
| Interest cost on $4,200 at minimum payment | $12,500+ |
Carrying a credit card balance at 20.99% is one of the most expensive forms of consumer debt. A $4,200 balance paid at the minimum would cost over $12,500 in interest and take decades to pay off.
Consider a balance transfer card to reduce the interest cost, or use the credit card payoff calculator to build a repayment plan.
Mortgage debt trends
| Year | Total Mortgage Debt | Average New Mortgage | 5-Year Fixed Rate |
|---|---|---|---|
| 2018 | $1.57 trillion | $285,000 | 3.59% |
| 2019 | $1.64 trillion | $290,000 | 3.09% |
| 2020 | $1.73 trillion | $308,000 | 2.39% |
| 2021 | $1.94 trillion | $360,000 | 2.14% |
| 2022 | $2.05 trillion | $385,000 | 4.99% |
| 2023 | $2.08 trillion | $355,000 | 5.49% |
| 2024 | $2.10 trillion | $358,000 | 4.99% |
| 2025 | $2.12 trillion | $365,000 | 4.49% |
Source: CMHC, Bank of Canada, financial institutions.
Mortgage debt nearly doubled from $1.1 trillion in 2012 to $2.12 trillion by 2025. The pace of growth slowed significantly after the Bank of Canada raised rates in 2022-2023, but total outstanding debt continues to grow as new mortgages are larger on average.
Insolvency trends
| Year | Consumer Insolvencies | Bankruptcies | Consumer Proposals | Change |
|---|---|---|---|---|
| 2019 | 137,178 | 47,014 | 90,164 | +4.7% |
| 2020 | 96,458 | 28,233 | 68,225 | -29.7% |
| 2021 | 92,004 | 23,807 | 68,197 | -4.6% |
| 2022 | 107,990 | 28,478 | 79,512 | +17.4% |
| 2023 | 128,846 | 30,212 | 98,634 | +19.3% |
| 2024 | 135,600 | 29,800 | 105,800 | +5.2% |
| 2025 (est.) | 138,000 | 29,500 | 108,500 | +1.8% |
Source: Office of the Superintendent of Bankruptcy (OSB).
Consumer proposals have replaced bankruptcy as the preferred form of debt relief in Canada — proposals now outnumber bankruptcies by nearly 4 to 1. Insolvencies dropped during the pandemic (due to government support programs and payment deferrals) and have been rising since as those supports expired and interest rates rose.
Debt-to-asset ratio
Not all debt is problematic when offset by assets. The Bank of Canada tracks the overall financial position of Canadian households:
| Year | Total Assets | Total Debt | Net Worth | Debt-to-Asset Ratio |
|---|---|---|---|---|
| 2018 | $13.3 trillion | $2.17 trillion | $11.1 trillion | 16.3% |
| 2020 | $14.4 trillion | $2.33 trillion | $12.1 trillion | 16.2% |
| 2022 | $16.9 trillion | $2.81 trillion | $14.1 trillion | 16.6% |
| 2024 | $16.5 trillion | $2.87 trillion | $13.6 trillion | 17.4% |
| 2025 | $16.8 trillion | $2.90 trillion | $13.9 trillion | 17.3% |
Source: Statistics Canada, National Balance Sheet Accounts.
While Canadians carry high debt, total assets (primarily real estate and financial investments) significantly exceed liabilities. The debt-to-asset ratio has remained relatively stable at 16-17%, though it ticked up in 2024 when home values softened while mortgage balances remained.
Key takeaways
- Mortgage debt is the dominant factor — 73% of all Canadian household debt is mortgage-related. High home prices in Toronto and Vancouver are the primary driver
- The debt-to-income ratio is declining — from a 2022 peak of 186% to 177%, as income growth outpaces new borrowing
- Insolvencies are still rising — consumer proposals have surged as Canadians seek structured debt relief options
- Seniors carrying debt is a growing concern — 18% of Canadians 65+ still have mortgage debt, up from 10% a decade ago
- Canada compares poorly internationally — among G7 nations, only Japan comes close to Canada’s household debt-to-GDP ratio
Related pages
- Net Worth by Age in Canada — How does your net worth compare?
- Average Income in Canada — Income data by province and age
- Mortgage Calculator — Calculate your monthly payment
- Mortgage Affordability Calculator — How much home can you afford?
- Average House Price in Canada — Home prices by city
- Average Rent by City — Rental data across Canada
- Credit Card Comparison — Compare and pay off credit card debt
- Retirement Calculator — Plan for a debt-free retirement