Non-Mortgage Delinquency Growth Slows in Second Quarter, but Ontario Homeowners Remain Under Pressure
TORONTO, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Equifax® Canada’s Q2 2026 Market Pulse Quarterly Consumer Credit Trends and Insights reveals that total Canadian consumer debt rose to $2.68 trillion, a 4.18 per cent increase compared to Q2 2025 and a 1.3 per cent rise from the previous quarter.
Following a drop in non-mortgage debt in Q1 2026, balances saw a seasonal rebound in the second quarter. Non-mortgage debt reached $712.2 billion in Q2, marking a 4.8 per cent jump year-over-year and a 2.09 per cent increase from Q1 2026. National 90+ day non-mortgage balance delinquency rates saw a seasonal improvement, dipping to 1.76 per cent in Q2 2026 from 1.79 per cent in Q1, though it remained elevated compared to the 1.70 per cent rate observed a year ago.
"Between March and June, we typically see non-mortgage debt levels rising and missed payments falling," said Rebecca Oakes, Vice President of Advanced Analytics at Equifax Canada. "This year has followed a similar pattern as consumers remain cautious, particularly around major purchases. And while rising delinquency levels have started to slow, pockets of growing stress are still evident in some areas."
Mortgage Holders In Ontario Continue To Show Financial Strain
While the Q2 data suggests an overall stable position for the credit health of Canadians, mortgage holders in Ontario continue to buck this trend. 90+ day missed payments on mortgages in Ontario have risen every quarter for the last 4 years, the wider impact being seen on other types of debt these individuals hold.
Nationally, non-mortgage debt for mortgage holders grew by 1.9% compared to the previous quarter, reaching $304.6 billion in Q2. Their 90+ day non-mortgage delinquency rate crept up to 0.77 per cent, an increase of 0.4 per cent compared to Q1 and 12.5 per cent rise year-on-year.
In Ontario, the 90+ day non-mortgage delinquency rate rose 2.2 per cent compared to Q1, and a huge 27 per cent vs 2025, reaching 0.86 per cent. Excluding Ontario, the national level rose just 2.1 per cent year on year, highlighting the divergence for Ontario.
"The data clearly shows that the persistent pressure of higher interest rates and mortgage renewal shocks have impacted many homeowners for several years," Oakes noted. "Ontario continues to stand out though, with some mortgage holders struggling to keep up with other credit obligations."
For those without a mortgage, the outlook was more favourable, their 90+ day non-mortgage delinquency rate improved by 2.3 per cent (at 2.5 per cent) compared to Q1 2026, remaining nearly unchanged year-over-year. However, the outlook was not as good in Ontario with the 90+ day non-mortgage delinquency rates rising 3.0 per cent compared to 12 months ago.
First-Time Homebuyers Increasingly Rely on Co-Borrowers
Joint mortgages among first-time homebuyers rose from 57.6 per cent in 2016 to 70.9 per cent through Q2 2026. Among first-time homebuyers under 35, Ontario and British Columbia had roughly twice the proportion of joint mortgages involving borrowers 20 or more years apart than the rest of Canada, pointing to greater reliance on parental or family support. “For many younger Canadians, buying a first home seems to increasingly mean doing it with someone else,” said Oakes. “Family support appears to play a larger role in higher-cost markets.”
Credit Card Balances Rise
After a slow start to the year in consumer card usage, credit card balances grew in the second quarter, supported by a seasonal rise in consumer spending. When adjusted for inflation, the average credit card spend per consumer climbed steadily throughout the quarter, reaching $2,192 and sitting 1.4 per cent higher than 12 months ago.
Consequently, national credit card debt swelled to $134.2 billion, up from $130.6 billion in Q1 2026. The 90+ day delinquency rate for national credit cards improved slightly to 4.19 per cent, down from 4.28 per cent in the previous quarter, but remained higher than 2025, showing a 6.8 per cent annual increase.
Payment behaviour on credit cards remained flat with 65 per cent of consumers paying their credit card balance in full each month. Minimum payment levels were stable at 4 per cent. A recent Equifax Canada Consumer Survey found that consumers surveyed were concerned about making their payments with 25 per cent of respondents noting that they expect to make only minimum payments in coming months, while another 7 per cent believe they are likely to fall behind.
"When we compare our recent survey to the data we are seeing today, it highlights that although the numbers are currently stable, consumers may be worried about maintaining this position," explained Oakes. "There seems to be a significant amount of uncertainty in the current environment and we need to be aware of the impact that any additional economic pressures could have on this particular consumer group."
Consumers Remain Cautious About New Vehicle Purchases
The automotive sector regained some seasonal momentum in Q2 2026. Auto loan balances (captives and auto bank loans) grew to $179.1 billion, representing a 2.2 per cent increase from Q1 2026 and a 4.9 per cent rise year-over-year. However, this increase was below expected levels for this time of year. The number of new auto loans opened in the second quarter was 9.2 per cent lower than Q2 2025, a similar trend to what we saw in Q1. Average new loan amounts were much higher compared to 12 months ago, on average rising from $34,713 to $36,979. The higher loan amounts contributed to the rising overall balance.
"Even with financing incentives and lower used vehicle prices, many consumers appear to be holding off on big purchases like new vehicles and waiting to see what the economy will bring. Economic conditions and employment uncertainty continue to influence household decisions,” added Oakes.
Encouragingly, the overall 90+ day delinquency rate for auto loans improved to 1.10 per cent, down from 1.11 per cent in the previous quarter. This improvement was driven primarily by the used vehicle market, whereas new auto loans experienced a slight uptick in severe delinquency rates.
Equifax Canada® Market Pulse Quarterly Consumer Credit Trends and Insights leverages market-leading data and analytics to deliver critical insights for Canada’s financial ecosystem to help consumers live their financial best.
Age Group Analysis – Debt & Overall Balance Delinquency Rates (excluding mortgages)
| Average Debt (Q2 2026) | Average Debt Change Year-over-Year (Q2 2026 vs. Q2 2025) | 90+ Day Delinquency Rate ($) (Q2 2026) | Delinquency Rate ($) Change Year-over-Year (Q2 2026 vs. Q2 2025) | 90+ Day Delinquency Rate (#) (Q2 2026) | Delinquency Rate (#) Change Year-over-Year (Q2 2026 vs. Q2 2025) | ||
| 18-25 | $8,746 | 3.42% | 2.15% | -5.59% | 2.50% | -2.31% | |
| 26-35 | $17,632 | 0.74% | 2.59% | 4.40% | 2.62% | 6.14% | |
| 36-45 | $27,509 | 1.57% | 2.12% | 2.98% | 2.29% | 4.80% | |
| 46-55 | $35,379 | 1.84% | 1.63% | 6.46% | 1.88% | 5.37% | |
| 56-65 | $30,718 | 4.69% | 1.27% | 4.17% | 1.31% | 7.26% | |
| 65+ | $15,567 | 4.17% | 1.15% | -0.79% | 0.82% | 3.55% | |
| Canada | $22,699 | 2.59% | 1.76% | 3.09% | 1.83% | 4.67% | |
Major City Analysis – Debt & Overall Balance Delinquency Rates (excluding mortgages)
| City | Average Debt (Q2 2026) | Average Debt Change Year-over-Year (Q2 2026 vs. Q2 2025) | 90+ Day Delinquency Rate ($) (Q2 2026) | Delinquency Rate ($) Change Year-over-Year (Q2 2026 vs. Q2 2025) | 90+ Day Delinquency Rate (#) (Q2 2026) | Delinquency Rate (#) Change Year-over-Year (Q2 2026 vs. Q2 2025) | |
| Calgary | $24,955 | 2.46% | 2.20% | 2.29% | 1.91% | 3.25% | |
| Edmonton | $24,189 | 1.32% | 2.69% | -2.81% | 2.33% | -0.95% | |
| Halifax | $22,101 | 2.84% | 1.54% | -0.82% | 1.82% | 4.50% | |
| Montreal | $17,724 | 3.00% | 1.59% | 2.58% | 1.80% | 4.92% | |
| Ottawa | $20,000 | 1.39% | 1.62% | 7.48% | 1.57% | 9.68% | |
| Toronto | $21,866 | 2.59% | 2.34% | 5.12% | 2.29% | 5.58% | |
| Vancouver | $24,507 | 3.85% | 1.47% | 4.28% | 1.65% | 6.60% | |
| St. John's | $24,612 | 1.27% | 1.43% | -5.91% | 1.82% | 0.30% | |
| Fort McMurray | $38,074 | 0.96% | 2.51% | -15.34% | 2.79% | -8.94% | |
Province Analysis - Debt & Overall Balance Delinquency Rates (excluding mortgages)
| Province | Average Debt (Q2 2026) | Average Debt Change Year-over-Year (Q2 2026 vs. Q2 2025) | 90+ Day Delinquency Rate ($) (Q2 2026) | Delinquency Rate ($) Change Year-over-Year (Q2 2026 vs. Q2 2025) | 90+ Day Delinquency Rate (#) (Q2 2026) | Delinquency Rate (#) Change Year-over-Year (Q2 2026 vs. Q2 2025) | |
| Ontario | $23,289 | 2.29% | 1.91% | 7.89% | 1.95% | 8.05% | |
| Quebec | $19,923 | 3.32% | 1.13% | -1.04% | 1.41% | 1.28% | |
| Nova Scotia | $22,236 | 3.23% | 1.65% | -1.70% | 1.99% | 3.80% | |
| New Brunswick | $23,509 | 7.56% | 1.62% | -9.47% | 2.03% | -2.37% | |
| PEI | $24,827 | 2.89% | 1.29% | 2.96% | 1.78% | 0.62% | |
| Newfoundland | $25,436 | 1.38% | 1.52% | -5.65% | 1.95% | 1.71% | |
| Eastern Region | $23,459 | 4.14% | 1.59% | -4.85% | 1.98% | 1.15% | |
| Alberta | $25,082 | 1.31% | 2.45% | -0.63% | 2.15% | 0.06% | |
| Manitoba | $18,887 | 1.90% | 1.77% | -0.87% | 1.87% | 4.40% | |
| Saskatchewan | $23,764 | 1.22% | 1.72% | -4.85% | 1.89% | -0.45% | |
| British Columbia | $23,558 | 2.86% | 1.57% | 3.27% | 1.72% | 5.43% | |
| Western Region | $23,670 | 2.05% | 1.94% | 0.35% | 1.91% | 2.52% | |
| Canada | $22,699 | 2.59% | 1.76% | 3.09% | 1.83% | 4.67% | |
* Based on Equifax data for Q2 2026
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