Household Debt Hits $2.6T, Super-Prime Balances Grow 6.9%
In Q4 2025, Canadian household debt climbed to $2.6T, up 4.3% YoY, while the credit-active population rose just 1.2%, reflecting concentrated borrowing among existing users. Super-prime balances expanded 6.9% to $1.406T and subprime debt grew 8.9% to $129B, pushing prime-and-above share to 71.6%.
1. Debt Growth Concentrated Among Existing Borrowers
In Q4 2025 Canadian household debt reached $2.6T, up 4.3% year-over-year, while the number of credit-active consumers rose just 1.2%, indicating that borrowing is concentrated among existing credit users.
2. Shift Toward Lower-Risk Borrowers
Prime-and-above risk tiers now account for 71.6% of total debt, with super-prime balances climbing 6.9% to $1.406T, reflecting strengthened repayment performance among low-risk households.
3. Rising Subprime Balances Raise Risks
Subprime borrowers held $129B in balances, an 8.9% increase, marking the fastest growth rate among all risk tiers and signaling potential vulnerability in financially stressed segments.
4. Implications for TransUnion and Lenders
Stable credit usage and evolving risk distributions may boost demand for TransUnion’s credit analytics and risk management services as lenders seek to balance growth with portfolio health.