Canadian Consumer Debt Hits $2.65 Trillion as Regional and Age Gaps Widen — Equifax Canada Co.

Event summary

Total consumer debt in Canada reached $2.65 trillion in Q4 2025, up 3.13% year-over-year.
Non-mortgage debt delinquency rates rose to 1.73%, with Ontario and Alberta showing the highest increases.
Younger consumers (aged 26-35) experienced the most significant decline in credit health, with a delinquency rate of 2.55%.
Credit card spending during the 2025 holiday season fell by 0.7% year-over-year, with younger consumers leading the pullback.
Mortgage renewals continued to dominate, with average new loan amounts climbing 4.1% to $363,778.

The big picture

Equifax Canada's Q4 2025 data reveals a growing divide in financial health across the country, with older consumers faring better than younger ones and regional disparities intensifying. The pullback in holiday spending helped curb typical January delinquency spikes, but persistent inflation and labor market pressures continue to strain consumer finances. Lenders are tightening credit access for riskier borrowers, highlighting the need for consumers to maintain healthy credit scores.

What we're watching

Regional Disparities: How the widening gap between Ontario/Western provinces and more affordable regions will impact lending strategies.
Credit Tightening: Whether lenders will continue to restrict access to credit for riskier borrowers amid rising fraud and economic difficulties.
Mortgage Affordability: The pace at which mortgage payment shocks from renewals will affect homeowners in high-priced regions like Ontario and British Columbia.