By Ritika Dubey
It reveals 1.4 million Canadians missed a credit score fee within the second quarter. Whereas that’s up by 118,000 in contrast with the identical time final yr, it’s down barely from the primary quarter.
Rebecca Oakes, vice-president of superior analytics at Equifax Canada, mentioned it’s “a bit of excellent information” to see the delinquency price levelling off.
“We’re beginning to lastly see that stabilize somewhat bit,” she mentioned in an interview.
“The much less excellent news, although, is that beneath that prime stage quantity, we’re nonetheless seeing this monetary hole widening for some teams of customers,” she added, notably between householders and non-homeowners.
About one in 19 Canadians with no mortgage missed not less than one credit score fee, in contrast with one in 37 householders, the report mentioned.
Complete shopper debt rose 3.1% year-over-year to $2.58 trillion, Equifax mentioned, whereas common non-mortgage debt per shopper elevated to $22,147.
Oakes mentioned varied elements, together with excessive unemployment and financial uncertainty — amplified by commerce disruptions — have made it more durable for a lot of Canadians to maintain up with day-to-day bills.
Customers below the age of 36 are being hit the toughest, the report suggests.
Millennials and gen Z noticed their common non-mortgage debt rise two per cent to $14,304 from a yr in the past. The group’s 90-plus days non-mortgage stability delinquency price additionally rose to 2.35% — a 19.7% leap year-over-year.
“The affordability disaster appears to be hitting youthful customers the toughest,” Oakes mentioned. “Between rising prices, employment uncertainty, and restricted entry to reasonably priced credit score, many are struggling simply to remain afloat.”
Additionally, many householders who locked in decrease mortgage charges through the peak of the pandemic might see their funds rise upon renewal.
“Fee ranges are going up for a lot of customers once they’re renewing their mortgage and when that may be a little bit an excessive amount of, the primary place you are likely to see that’s (missed funds) on issues like bank cards,” she mentioned.
Ontario remained the recent spot for monetary misery within the second quarter. The 90-plus day delinquency price was 1.75%, which is 15.2 foundation factors increased than the nationwide common, the report mentioned.
The charges of missed funds had been even increased within the metropolis of Toronto and the encompassing space, that are uncovered to the tariff-hit auto and metal sectors.
Nevertheless, Oakes mentioned the monetary hole between householders versus non-homeowners in Ontario peaked final yr and has began to return down.
One other credit-tracking company, TransUnion, launched its second-quarter shopper credit score report final week.
It mentioned shopper debt reached $2.52 trillion within the second quarter, up 4.4% year-over-year.
“Subprime customers usually tend to really feel the affect of upper prices of residing and will select to tackle extra debt, corresponding to bank card balances, to assist cowl the prices of products and companies,” Matthew Fabian, director of monetary companies analysis and consulting at TransUnion Canada, mentioned in a press release.
“For different danger tiers of debtors, their card stability progress has been lower than the speed of inflation, indicating that these customers are much less reliant on bank cards to take care of buying energy,” he mentioned.
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equifax Canada Matthew Fabian mortgage credit score mortgage debt mortgage delinquency price rebecca oakes The Canadian Press TransUnion Canada
Final modified: August 18, 2025
