Canadian Household Debt Reaches $2.6 Trillion in 2025, Credit Reporting Agency Says

Canadians’ household debt, ranging from credit cards to auto loans, reached a new high in the final quarter of 2025, according to a report from a consumer credit reporting agency.

Total household debt in Canada climbed to $2.6 trillion at the end of 2025, a 4.3 percent or $107.2 billion increase over 2024, said the report released by TransUnion Canada, after summing up outstanding balances across all credit products.

Higher mortgage balances accounted for much of the increase, the Feb. 25 report said. Mortgage balances rose 4.3 percent year-over-year to $1.91 trillion.

The agency said mortgage originations, the process of creating a loan, rose 14.5 percent year-over-year, as homeowners sought to refinance or renew earlier “ahead of anticipated rate declines.”

The Bank of Canada had held its policy rate at 2.25 percent for much of the final quarter of 2025. It said in December that the level would be at “about the right level” to keep inflation near 2 percent while helping Canada’s economy grow. The central bank kept the same rate last month.

TransUnion Canada’s quarterly report said mortgage borrowers were moving toward shorter fixed-term products—particularly those of one- and three-year terms—and away from the traditional longer-term mortgage.

“[The trend] continued to accelerate as households sought optionality in the face of uncertain rate paths,” the report said. “This aligns with broader market observations that Canadians are increasingly avoiding long-term commitments until monetary policy normalizes.”

Debt Payments

The momentum gained in mortgage originations has led the average new mortgage amount to jump 4.2 percent year-over-year to $367,669, particularly affecting the Toronto and Vancouver housing markets, the report added. Meanwhile, the average mortgage balance rose 4.4 percent over the same period to $288,720, “reflecting both elevated home prices and borrowers stretching further to maintain ownership in high‐cost regions.”

Translated into monthly payments, the average minimum mortgage amount due per Canadian rose 4.2 percent from Q4 2024, reaching $2,513 in the fourth quarter of 2025.

The report said credit cards, auto finance, personal loans, and student loans similarly recorded year‐over‐year increases in minimum payment due, with the exception of lines of credit, which declined 5.6 percent.

A calculation by TransUnion Canada indicated that the total non-mortgage debt in Canadian households rose 4.4 percent year-over-year, totalling $685 million, with the average debt per consumer reaching $27,444.

As for credit card debt, the agency reported on its website that the average balance per consumer in Q4 2025 reached $4,763, up from $4,681 in Q4 2024, marking a 1.74 percent increase year-over-year.

Installment loans were up with the average balance rising 4 percent over the same period to $23,576, according to the site. Amount for auto loans tallied at $30,924 in 2025 from $29,656 in 2024. Average consumer balance for lines of credit climbed from $35,190 in 2024 to $36,468 last year.

Despite highlighting rising consumer credit debt, the agency noted in a press release accompanying the report that “Canadian consumer credit delinquencies remained stable as consumers and lenders have adjusted to the evolving economic landscape.”

“While some credit products continued to see modest increases in delinquency rates [year-over-year] in Q4 2025, the pace of deterioration slowed compared to recent years – pointing to a potential plateau,” the release said.