Statistics Canada Raises Household Debt Ratio to 179.6%
Canadian household debt rose to 179.6 per cent of disposable income in the first quarter of 2026, extending a stretch in which borrowing has outpaced income for six straight quarters. The ratio increased 0.9 percentage points from the previous quarter, leaving roughly $1.80 in credit market debt for every dollar of household disposable income.
That leaves households with a heavier debt load while borrowing continued to grow. Seasonally adjusted household credit market borrowing totalled $35.5 billion in the quarter, up from $34.5 billion in the fourth quarter of 2025, even as the debt service ratio edged up to 14.75 per cent from 14.68 per cent.
Mortgage borrowing slowed sharply
Net originations of mortgage loans fell $22.6 billion in the first quarter of 2026, a sharp pullback from $26.3 million in the fourth quarter of 2025. The drop in mortgage lending did not stop total borrowing from rising because increases in consumer credit and non-mortgage debt offset the decline.
Household debt service at 14.75%
14.75 per cent of household disposable income went to debt service in the first quarter, a small rise from the prior quarter’s 14.68 per cent. For households, that means a larger share of income is already committed before any new spending is added, which leaves less room to absorb higher payments or new borrowing. If income growth does not keep pace with credit market debt, the ratio stays pinned at elevated levels.
Six quarters above income
Six straight quarters above income is the clearest sign in the report that borrowing pressure has not eased. The mix also shifted: mortgage borrowing slowed, but consumer credit and other non-mortgage debt kept the headline borrowing total moving higher. That combination matters for households trying to manage cash flow, because the balance is not falling even when one major borrowing channel cools.
The next quarter will show whether slower mortgage originations can offset growth in consumer credit and non-mortgage debt, or whether the debt-to-income ratio keeps moving higher from 179.6 per cent.
