Business UpdateMay 26, 2026, 05:32 AM
Equifax Canada: Q1 Insolvencies Hit 17-Year High Amid Rising Debt
AI Summary
Equifax Canada's Q1 2026 Market Pulse report reveals a complex credit landscape, with total consumer debt climbing to $2.66 trillion, up 3.8% year-over-year, while non-mortgage debt saw its first quarterly decline in several periods. Despite some signs of consumer financial discipline, insolvency volumes reached a 17-year high, increasing 18.8% year-over-year. New credit originations, including credit cards and auto loans, declined significantly, and mortgage stress intensified in high-cost markets like Ontario and British Columbia, with delinquencies rising sharply.
Key Highlights
- Total Canadian consumer debt rose to $2.66 trillion, up 3.8% year-over-year.
- Non-mortgage debt decreased by over $487 million in Q1 2026, the first decline in several quarters.
- Insolvency volumes surged 18.8% year-over-year, reaching levels not seen since 2009.
- New credit card originations hit a four-year low, with growth limited to super-prime and sub/near-prime segments.
- New captive auto loans fell nearly 5% year-over-year to a three-year low.
- National 90+ day mortgage balance delinquency rate climbed 32% year-over-year to 0.28%.
- Average non-mortgage debt in insolvencies increased to $43.3K in Q1 2026, up from $40.2K two years ago.
- Consumers aged 25 and under showed their first year-over-year improvement in 90+ day delinquency rates since mid-2022.
Price Impact
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