Canadian Consumer Debt Hits $2.66T as Insolvencies Surge 18.8%
EFX•Q1 consumer debt reached $2.66T, up 3.8% year-over-year, while non-mortgage balances contracted by $487M—the first quarterly drop in several quarters. Insolvencies surged 18.8% to the highest level since 2009 as new credit card originations plunged to a four-year low and lenders cut higher-risk limits 15–20%.
1. Q1 Consumer Debt and Insolvencies
The Q1 report shows total consumer debt climbed to $2.66 trillion, a 3.8% increase year-over-year, while non-mortgage balances fell by $487 million—the first quarterly decline in several quarters. Insolvency volumes rose 18.8% to levels unseen since 2009, with homeowner insolvencies up 11% quarter-over-quarter and average insolvency debt at $43.3K for non-mortgage filers and $82.4K for mortgage holders.
2. Credit Originations and Lending Standards
New credit card originations dropped to a four-year low as demand softened across most risk segments. Lenders responded by reducing average credit limits for higher-risk applicants by 15–20%, while super-prime consumers received modest limit increases.
3. Auto and Installment Loan Slowdown
Captive auto loan originations declined nearly 5% year-over-year to a three-year low, and bank instalment loan volumes fell 9.5%, reflecting heightened consumer caution despite lower vehicle prices offset by rising insurance and maintenance costs.
4. Delinquency Trends and Regional Variations
National 90+ day delinquency balances and volumes rose by 4.18% and 2.38%, respectively. Provincial results diverged: Quebec, Nova Scotia, Saskatchewan and New Brunswick showed delinquency improvements, while Ontario, British Columbia and Manitoba experienced worsening trends.
