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Canadian Consumer Debt Increases to $2.6 Trillion Primarily on Mortgages
Mortgage originations rose 18% year-over-year amid falling interest rates, while late-stage delinquencies increased 4 basis points, highlighting regional financial stress disparities, TransUnion reported.
- On Nov. 25, 2025, TransUnion reported total consumer debt reached $2.6 trillion in Q3 2025 as mortgage balances rose to $1.89 trillion and originations jumped 18% year-over-year.
- Lower interest rates spurred refinancing and earlier renewals, driving mortgage originations up 18% as many borrowers chose shorter one- or three-year fixed mortgages and loan sizes rose 4.1% to $359,623.
- Despite improved short-term payments, late-stage delinquencies rose to 1.77%, while early-stage delinquency eased to 4.8%, indicating a widening gap in payment struggles.
- Widening disparities mean some Canadians are falling further behind as Credit Canada reports a rise in inquiries, with a 40-per-cent increase nationally and more in Ontario and Quebec.
- Looking ahead, stabilization in interest rates and inflation may ease pressure, but TransUnion notes late-stage delinquencies reflect earlier stress due to a charge-off lag of 9–12 months, while the federal mortgage stress test limits defaults.
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11 Articles
Canadian consumer debt load spikes to $2.6 trillion as falling interest rates make borrowing cheaper
While credit delinquencies remained largely flat, experts warned of possible troubles ahead as U.S. President Donald Trump's tariffs work their way through affected industries like automaking.
·Toronto, Canada
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Canadian consumer debt load spikes to $2.6 trillion as falling interest rates make borrowing cheaper
While credit delinquencies remained largely flat, experts warned of possible troubles ahead as U.S. President Donald Trump's tariffs work their way through affected industries like automaking.
·Hamilton, Canada
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Coverage Details
Total News Sources11
Leaning Left6Leaning Right1Center3Last UpdatedBias Distribution60% Left
Bias Distribution
- 60% of the sources lean Left
60% Left
L 60%
C 30%
Factuality
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