Canada’s Credit Divide: Balances Soar In East, Defaults Rise In Ontario

1 week ago 10

Canadian household debt is throwing out more concerning data points. Equifax data shows non-mortgage credit grew in Q2 2026—both balances and delinquencies. Ontario is leading the erosion, with missed payments rising at double the average. Meanwhile, New Brunswick is leading for credit growth, but it showed limited payment stress. There’s a good reason for this split. Canadian Consumer Debt Loads Are Flattening Across Provinces Canadian non-mortgage debt: Average per consumer by region in Q2 2026. Source: Equifax; Better Dwelling. Canadian non-mortgage household debt climbed 2.1% (+$14.6 billion) to $712.2 billion in Q2 2026, up 4.6% (+$32.6 billion) from last year. A busy quarter, considering almost half of the debt added within the past year was just Q2. The agency estimates the average consumer owed $22,699 in the quarter, 2.6% higher than last year. Debt is growing, but so are signs of households cracking under the astronomical loads. The non-mortgage delinquency rate came in at 1.76% in Q2, 5 basis points (+3.1%) higher than last year. Equifax notes a quarterly decline occurred, but suggested it’s a seasonal issue and not a trend. “Between March and June, we typically see non-...

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