Gen Z Credit Balances Jump 9.1% to $13,621 as Delinquencies Stabilize
TRU•Gen Z credit active consumers in Canada increased by 460,000, a 7.8% year-over-year rise, while their average non-mortgage balances climbed 9.1% to $13,621 in Q1 2026. Total consumer delinquency eased to 1.86%, with Gen Z serious delinquencies falling 11 basis points to 2.75%.
1. Gen Z Credit Adoption Accelerates
In Q1 2026, the number of Gen Z consumers with active credit profiles rose by over 460,000, marking a 7.8% year-over-year increase as more young Canadians entered the financial ecosystem. Average non-mortgage balances for Gen Z climbed 9.1% to $13,621, driven by higher credit card and personal loan usage alongside initial participation in auto and mortgage lending.
2. Overall Delinquency Levels Show Signs of Stabilizing
Total serious consumer delinquency (90+ days past due) edged slightly lower to 1.86%, reflecting slower growth in credit stress compared to prior quarters. Gen Z serious delinquency rates improved by 11 basis points to 2.75%, the largest improvement among all age groups, while other generations saw more modest declines.
3. Provincial Variations Highlight Diverging Risk
Regional delinquency trends diverged significantly, with Alberta’s serious delinquency rate rising to 2.43%, up 6 basis points due to energy-sector volatility. In contrast, Manitoba, Newfoundland and Labrador, Nova Scotia and British Columbia reported meaningful reductions in credit stress, underscoring varied economic conditions across provinces.
