Household debt hits $1.80 per dollar of income, sixth straight rise
Statistics Canada reports the debt-to-income ratio rose to 179.6% in Q1 2026 as Canadians borrow more.
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Canadian household debt climbed for the sixth straight quarter, outpacing income growth and signaling mounting financial stress for households.
Statistics Canada reported Friday, June 12, that the seasonally adjusted ratio of household credit market debt to disposable income rose 0.9 percentage points to 179.6% in the first quarter of 2026. In practical terms, that means households owe roughly $1.80 in credit market debt for every dollar of disposable income.
The household debt service ratio—measuring obligated payments of principal and interest as a share of disposable income—climbed to 14.75% in Q1 2026 from 14.68% in Q4 2025.
Total household credit market borrowing, including consumer credit and mortgage and non-mortgage loans, reached $35.5 billion in the quarter, up from $34.5 billion in the final three months of 2025. Mortgage originations fell $22.6 billion, but increases in consumer credit and non-mortgage debt offset the decline.
The persistent rise in debt relative to income reflects Canada's ongoing cost-of-living pressures, even as the economy has shown resilience. Households are borrowing more to maintain consumption levels as housing costs, food prices, and interest rates remain elevated.
The trend underscores mounting household financial fragility across the country.