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3mo ago

1.4 Million Canadians Fall Behind on Credit Payments as Ontario Mortgage Defaults Spike

Ramped-up interest rates have intensified financial strain on consumers across Canada.

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Equifax said that the non-mortgage delinquencies had risen 24 per cent over the first quarter of 2024.
Total debt continued to grow in the first quarter of 2025 compared with the year before, driven mainly by young people and newcomers, a TransUnion report shows. Credit cards shown on Thursday, Oct. 6, 2022.THE CANADIAN PRESS/Andrew Vaughan

Overview

  • 1.4 million Canadians missed at least one credit payment in Q1 2025, the highest level since 2009.
  • The on-time credit card payment rate dropped to 52.9%, while delinquency among 18–25 year-olds surged 15.1%.
  • Average monthly credit card spending fell by $107, marking the lowest level since March 2022.
  • Ontario’s mortgage delinquency rate climbed 71.5% year-over-year to 0.24% as higher renewal rates bite.
  • Non-mortgage defaults in Ontario rose 24% and average non-mortgage debt per Canadian reached $21,859 driven by auto loans.