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Consumer debt hits record $2.6 trillion as more Canadians fall behind on payments

Although the credit market remained healthy, the data suggest Canadians are experiencing increasingly different financial realities.

Total consumer debt in Canada rose to a record of over $2.6 trillion in the second quarter as more Canadians fell behind on payments, according to two of the largest consumer credit reporting agencies.

Equifax Inc. said in its consumer credit report that debt among Canadian consumers is up 4.18 per cent in the quarter from the year before to $2.68 trillion and up 1.3 per cent from the first quarter.

TransUnion said Canadian consumer debt hit a record $2.64 trillion in the second quarter, with debt levels growing faster than the number of Canadians using credit as existing borrowers carried larger balances than a year earlier.

“There seems to be a significant amount of uncertainty in the current environment and we need to be aware of the impact that any additional economic pressures could have on this particular consumer group,” said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada.

Oakes said consumers remain cautious , particularly around major purchases. While rising delinquency levels have started to slow, pockets of stress are still evident in some areas.

Although the credit market remained healthy, the data suggest Canadians are experiencing increasingly different financial realities, said TransUnion.

Borrowing growth was strongest among consumers with the highest and lowest credit profiles, it said, which indicates that while some households expanded borrowing from a position of financial strength, others may have relied more heavily on credit to manage daily expenses.

TransUnion said more Canadians fell seriously behind on debt payments year-over-year, with stress concentrated in Alberta, Saskatchewan and Ontario. The most significant deterioration in serious consumer delinquency — over 90 days past due — was concentrated in these three provinces.

Rates on mortgage delinquency remain low nationally, said Matt Fabian, senior director of financial services research and consulting at TransUnion Canada. However, the share of serious mortgage delinquency, over 60 days, edged higher.

Signs of credit stress are concentrated in higher-cost housing markets , where borrowers tend to carry larger mortgage balances and face greater exposure to affordability pressures and payment shocks, he said.

“The gap between stable delinquency and rising insolvency is one of today’s more nuanced credit dynamics,” said Fabian.

He said on one hand, delinquency metrics suggest the market remains resilient, while on the other rising insolvency filings show that some consumers, especially those without the asset buffer of homeownership, face growing financial pressure.

“The key question for the second half of 2026 is whether economic normalization can ease that pressure,” he said.

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