Canada's consumer debt reaches $2.56 trillion in 2024

Total consumer debt in Canada reached $2.56tn by the end of 2024, a 4.6 percent increase from 2023, driven largely by non-bank auto loans, which rose 11.7 percent year-over-year.

The average non-mortgage debt per consumer climbed to $21,931, surpassing pre-pandemic levels.

Ontario mortgage holders face severe financial distress, with delinquencies exceeding pre-pandemic levels by more than 50 percent, according to Equifax Canada’s Q4 2024 Market Pulse Consumer Credit Trends Report.

Meanwhile, a financial divide is widening across Canada as some borrowers benefit from lower interest rates while others struggle with rising debt.

Rebecca Oakes, vice president of Advanced Analytics at Equifax Canada, noted that while some consumers benefit from lower interest rates, financial pressures remain for others, particularly mortgage holders in Ontario and British Columbia.

“At first glance, the numbers are not concerning, but when we look deeper at a more granular level, many are feeling the strain of high living costs and mortgage renewals with higher payments,” she said.

However, some homeowners saw relief from rate cuts, as delinquency rates on home equity lines of credit stabilized. More consumers improved credit card repayment habits, with a growing number paying off balances in full.

Ontario mortgage holders face rising delinquencies

In Ontario, more than 11,000 mortgages recorded a missed payment in Q4 2024—nearly triple the number from 2022. Mortgage holders struggling with payments carried substantially higher mortgage balances, reflecting the continued impact of elevated interest rates.

The province’s 90+ day mortgage balance delinquency rate surged 90.2 percent year-over-year to 0.22 percent.

Other provinces recorded varying changes: British Columbia at 37.7 percent, Quebec at 41.2 percent, the Atlantic provinces at 15.7 percent, and Alberta at -3.6 percent.

Ontarians also experienced rising non-mortgage debt challenges. The 90+ day non-mortgage balance delinquency rate in the province jumped 46.1 percent from Q4 2023.

In comparison, BC saw a 21.6 percent increase, Quebec 23.3 percent, and Alberta 6.1 percent. Ontario’s overall non-mortgage delinquency rate increased by 23.9 percent, surpassing the national average of 18 percent.

Oakes explained, “Mortgage holders will typically do everything they can to keep up with payments. The fact that we’re seeing missed payments rise so sharply suggests deeper financial strain.”

Toronto’s 90+ day non-mortgage delinquency rate stood at 2.06 percent, among the highest in major cities, underscoring the region’s financial challenges.

Mortgage market sees growth amid renewal challenges

Canada’s mortgage market showed signs of recovery, with new mortgage originations rising 39 percent year-over-year. First-time homebuyers returned, with a 28.2 percent increase from Q4 2023 lows.

The average loan amount for first-time buyers remained 6.6 percent higher than Q4 2023, but monthly payments declined 7.9 percent to an average of $2,330.

Mortgage renewals and refinancing accounted for over 50 percent of new mortgage originations in Q4 2024, increasing 10.6 percent from 2023. The average balance on mortgage renewals rose 2.9 percent year-over-year.

With around one million mortgages set for renewal in 2025, many borrowers face significantly higher payments despite recent rate reductions.

In Q4 2024, a quarter of mortgage-holders saw their monthly payments rise by more than $150.

Consumer credit and spending trends

Credit card debt increased 7.8 percent in Q4 2024, though at the slowest pace since 2022.

December seasonal spending reached a two-year high, with the average credit card purchase per cardholder adjusted for inflation at $2,228—a 2.2 percent increase from 2023.

Financial strain continues for younger and lower-income Canadians, as missed payments on credit cards, auto loans, and lines of credit remain prevalent.

“Despite recent rate cuts and GST tax relief, challenges persist for certain consumers, particularly in consumer debt and housing. The added uncertainty of US tariffs underscores the need for a balanced approach to debt, affordability, and trade. The coming year will be critical for Canada's economic stability,” Oakes said.

Debt and delinquency by age group (excluding mortgages)

_{Source: Equifax Canada’s Q4 2024 Market Pulse Consumer Credit Trends Report}

Debt and Delinquency by Province (excluding Mortgages)

_{Source: Equifax Canada’s Q4 2024 Market Pulse Consumer Credit Trends Report}