Canadians closed out last year with a growing amount of debt and a growing divide between those who able to manage it and those who are struggling.
According to the credit-tracking agency Equifax, total consumer debt in Canada hit $2.56 Trillion at the end of 2024, up 4.6% over 2023. The company says much of that was driven by an increase in non-bank car loans, but pricey housing continues to be a key factor.
Ontario is the most glaring example cited in the fourth quarter Market Pulse Report. It shows the province experienced a 90% increase in its 90+ day mortgage delinquency rate. That is a shocking number especially compared to the country’s other extremely expensive market, British Columbia. B.C.’s default rate rose by about 38%. Fortunately, Ontario’s overall delinquency rate remains low, at just 0.22%.
One of Canada’s more affordable markets, Quebec, saw the second highest increase in delinquencies, with a 41% jump, but that is less than half the upsurge that hit Ontario. Alberta saw delinquencies drop nearly 4.0%.
Interest rates continue to be a major factor in the debt equation. Even though rates are dropping they remain considerably higher than the rock bottom levels experienced during the pandemic. With about one million mortgages up for renewal this year, times will continue to be tight for many homeowners.
Credit card debt rose about 8.0% in the fourth quarter of 2024. Non-mortgage debt averages about $22,000 per person in Canada.