Canada consumer debt hits record $3.29 trillion

Canadian consumer debt has reached record levels, with total household debt hitting approximately $3.29 trillion. While the overall growth rate of debt is slowing, the composition of borrowing is shifting.

According to TransUnion, consumer debt reached $2.64 trillion in the second quarter of 2026. Growth in new mortgages has slowed due to affordability pressures, while consumer credit has become a significant driver of debt. Statistics Canada data indicates that consumer credit growth in June reached 0.87%, a year-over-year increase of 4.8%, which outpaces the growth rate of mortgage debt.

Financial stress is becoming more concentrated in specific regions, including Alberta, Saskatchewan, and Ontario. Debt growth is most pronounced at both ends of the credit spectrum: super-prime balances grew 6.5% year-over-year, while subprime balances increased 5.9%. This trend suggests that while some households are expanding their borrowing, others are facing increasing difficulty managing payments.