markets
Canadian household debt hits $3.29 trillion as distress borrowing rises
StatCan July credit hit a record high as mortgage growth slowed toward generation lows and higher-cost consumer credit led the advance.
TIC Staff · September 21, 2026 · 1 min read
Canadian household credit liabilities rose 0.3% (+$10.0 billion) to $3.29 trillion in July, up 4.2% (+$131.4 billion) from a year earlier, Statistics Canada data show.
Mortgage debt still dominates but is cooling: the outstanding balance climbed 0.4% (+$8.7 billion) to $2.45 trillion, 4.0% higher year over year. Nearly 4% growth would look healthy at this stock, but over 27 years only 17 months have been this slow or slower — all in 2023 and 2024 during the correction.
Consumer (non-mortgage) credit rose 0.2% (+$1.3 billion) to $835.7 billion, up 4.7% year over year — outpacing mortgages. TransUnion attributes the bump to consumption smoothing and distress borrowing: households tapping higher-interest revolving credit as living costs outrun incomes, with mortgage balances also climbing more on existing accounts than new originations.
That mix keeps Canada’s household balance sheet sensitive: secured housing leverage is slowing, but costlier unsecured credit is carrying more of the load just as renewal and cost-of-living pressure still bite.
Statistics Canada / TransUnion