Equifax Canada Says Insolvency Volumes Hit 2009 High
Equifax Canada said first-quarter insolvency volumes reached their highest level since 2009, rising 18.8 per cent from a year earlier as higher interest rates kept payment pressure elevated. For homeowners, the jump was sharper: insolvency volumes climbed more than 11 per cent from the fourth quarter, with more than 90 per cent choosing consumer proposals over bankruptcy.
Rebecca Oakes on payment pressure
Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said: “While the mortgage renewal wave is expected to slow towards the end of 2026, the transition to significantly higher interest rates continues to fuel financial impact and payment pressure” — a line that tracks with the rise in filings and the strain still showing up in household debt.
“Consequently, ongoing monitoring of debts remains essential for Canadians.” The report also showed the average non-mortgage debt in insolvencies reached $43,300 in the first quarter, while homeowner insolvencies carried a much higher average of $82,400. For homeowners who had missed a payment, average delinquent non-mortgage balances reached $54,000.
Ontario and B.C. delinquencies
Mortgage delinquencies among homeowners who had missed a payment climbed 13.2 per cent to $355,500, while the biggest regional stress showed up in Ontario and British Columbia. Mortgage delinquencies jumped 52 per cent year over year in Ontario and 36 per cent in British Columbia, a gap that points to how uneven the pressure is across the country.
At the same time, total consumer debt climbed to $2.66 trillion even as non-mortgage debt fell by more than $487 million in the quarter, the first decline in several quarters. Oakes said: “The reduction in holiday spending at the close of 2025 translated into lower seasonal balance increases on credit cards” and “This discipline enabled many Canadians to pay down balances during the first quarter, representing a critical shift in how consumers are navigating the current macroeconomic climate.”
Credit demand slows in 2026
New credit card originations hit a four-year low, new captive auto loans fell nearly five per cent year over year to a three-year low, and bank instalment loan volumes dropped 9.5 per cent. The number of Canadians missing at least one credit payment held at 1.5 million, or one-in-21, even as the report said systemic risks persist and the mortgage renewal wave is expected to slow toward the end of 2026.
