Average Canadian Household Debt by Province — 2026 Data

TL;DR

As of early 2026, the average Canadian household carries roughly $21,000 in non-mortgage consumer debt, according to data from Equifax Canada and Statistics Canada. This figure varies widely by province — Alberta and British Columbia sit at the higher end, while Quebec has consistently lower averages. Consumer insolvency filings have risen steadily since 2023, with consumer proposals outpacing bankruptcies by a growing margin.

National Debt Overview

Canada's household debt levels are among the highest in the G7. The debt-to-disposable-income ratio has hovered near 180% in recent years, meaning that for every dollar of disposable income, Canadian households owe approximately $1.80 in total debt (including mortgages).

Non-mortgage consumer debt — the category most relevant to debt relief discussions — includes credit cards, auto loans, personal lines of credit, student loans, and other unsecured and secured consumer borrowing. This figure has been climbing steadily, driven by inflation, higher interest rates, and the rising cost of essentials like food, housing, and transportation.

The Bank of Canada's rate increases between 2022 and 2024 significantly increased the cost of variable-rate debt and the renewal rates on fixed-term loans. Many Canadians who locked in low rates during 2020-2021 have faced sharply higher payments upon renewal.

Debt by Province

Debt levels across Canada reflect regional economic conditions, housing costs, and employment patterns. While exact figures shift quarterly, the general rankings have remained consistent.

Higher-debt provinces:

• Alberta: Higher average incomes support larger borrowing, but economic volatility in the energy sector creates vulnerability. Average non-mortgage debt is among the highest nationally.
• British Columbia: Elevated housing costs push many residents to rely more heavily on credit for day-to-day expenses. Auto loan and credit card balances tend to be above the national average.
• Ontario: As Canada's most populous province, Ontario carries significant aggregate debt. Toronto-area residents face particularly high cost-of-living pressures.

Lower-debt provinces:

• Quebec: Historically has the lowest average consumer debt per capita. Cultural attitudes toward borrowing and lower housing costs relative to income both play a role.
• Atlantic provinces: Lower average incomes correspond with lower total borrowing, though debt-to-income ratios in some Atlantic provinces are actually higher than the national average.

Prairie provinces (Saskatchewan, Manitoba):

• Moderate debt levels reflecting moderate housing costs and mixed economic conditions.

The Rise of Consumer Insolvency Filings

Data from the Office of the Superintendent of Bankruptcy shows a clear upward trend in consumer insolvency filings since mid-2023. This trend accelerated through 2024 and 2025.

A notable shift is the growing proportion of consumer proposals relative to bankruptcies. In the early 2000s, bankruptcies far outnumbered proposals. By the mid-2020s, consumer proposals account for approximately 75-80% of all consumer insolvency filings. This shift reflects several factors:

• Greater awareness of consumer proposals as an option
• The desire to keep assets (particularly home equity)
• Higher incomes that make surplus income payments in bankruptcy substantial
• LITs increasingly recommending proposals as a first option for eligible individuals

If you are considering your options, our debt relief quiz can help determine which path might be appropriate for your situation.

What Is Driving the Increase?

Several macroeconomic factors are contributing to rising debt distress among Canadians:

Interest rate environment. The Bank of Canada raised its policy rate from 0.25% in early 2022 to 5.00% by mid-2023. While rates have come down modestly since then, they remain significantly above the near-zero levels that many Canadians had grown accustomed to. Variable-rate mortgages, HELOCs, and lines of credit are directly affected.

Cost of living. Grocery prices, rent, and insurance premiums have all increased substantially. For households already stretched thin, these increases push credit card usage higher and make minimum payments harder to maintain.

Mortgage renewals. A wave of fixed-rate mortgage renewals in 2025 and 2026 is bringing the interest rate shock home for millions of Canadians who locked in at historically low rates in 2020-2021. Monthly mortgage payments increasing by $500 to $1,500 are not uncommon.

Employment uncertainty. While Canada's unemployment rate has remained relatively stable, underemployment and job insecurity in certain sectors (technology, retail, hospitality) contribute to financial stress.

Debt Distress Warning Signs

If you are experiencing any of the following, it may be time to explore your options:

• Using credit cards to pay for basic necessities (groceries, utilities)
• Only making minimum payments on credit cards
• Receiving calls from collection agencies
• Borrowing from one source to pay another
• Losing sleep over financial stress
• Falling behind on utility or insurance payments

These are signs of a pattern that typically gets worse without intervention. Exploring your options early — before debts become unmanageable — gives you more choices. Learn about all available debt relief options or speak with a Licensed Insolvency Trustee for a free assessment.

FAQ

Is Canadian household debt worse than other countries? Canada's household debt-to-income ratio is among the highest in the G7 and OECD. However, comparisons are complicated by differences in housing markets, social safety nets, and how debt is measured across countries. What is clear is that Canadian households are carrying historically high levels of debt relative to their incomes.

How does mortgage debt affect the picture? When mortgages are included, total average household debt in Canada is well above $200,000. However, mortgages are secured by property and are not typically included in consumer proposal or bankruptcy discussions. Non-mortgage consumer debt is the more relevant figure for evaluating debt distress and relief options.

Where can I find official debt statistics? The OSB publishes quarterly insolvency statistics. Statistics Canada and Equifax Canada publish consumer credit data. The Bank of Canada's Financial Stability Report also tracks household debt trends. Links are provided in the sources below.

Sources

• Office of the Superintendent of Bankruptcy — Insolvency Statistics
• Statistics Canada — Household Debt
• Canadian Association of Insolvency and Restructuring Professionals (CAIRP)
• Bank of Canada — Financial Stability Report