What is the average debt by age in Canada?

Average total debt varies significantly by age. Canadians aged 18-25 average $16,800 in debt, rising to $74,200 for ages 26-35, peaking at $138,500 for ages 36-45 (when mortgage debt is highest), then declining to $108,400 for 46-55, $78,200 for 56-65, and $31,400 for 65+. Mortgage debt dominates overall totals.

How much debt is too much in Canada?

Financial experts consider a debt-to-income ratio above 40% concerning, though it depends on the type of debt. Total debt service ratio (mortgage + other debt payments) should stay below 44% of gross income for most lenders. The average Canadian household debt-to-income ratio is 181%, meaning $1.81 in debt for every $1 of annual income.

What is the average credit card debt in Canada by age?

Average credit card debt is around $4,200 across all ages. By age group: 18-25 averages $2,100, 26-35 averages $4,800, 36-45 averages $5,400 (highest), 46-55 averages $4,900, 56-65 averages $3,800, and 65+ averages $2,600. Balances that are not paid monthly incur high interest.

Is mortgage debt considered bad debt?

Mortgage debt is generally considered good debt because it builds equity in an appreciating asset (your home). Bad debt includes high-interest consumer debt like credit cards that finance depreciating purchases. However, excessive mortgage debt relative to income can still be problematic, especially with rising interest rates.

What percentage of Canadians are debt-free?

Approximately 25-30% of Canadian households are completely debt-free, including no mortgage. This percentage rises significantly with age: only about 10% of 35-44 year-olds are debt-free (most have mortgages) compared to 55% of those 65 and older. Being debt-free while renting is different from being debt-free as a homeowner.

How much student loan debt does the average Canadian have?

The average Canadian student graduates with approximately $28,000-32,000 in student loan debt (federal and provincial combined). Among those with student loans aged 25-34, the average balance is approximately $18,500, reflecting partial repayment since graduation.

Average Debt by Age in Canada 2026: Compare Your Debt Load

How does your debt compare to other Canadians your age? Whether you’re carrying a mortgage, paying off student loans, or managing credit card balances, understanding average debt levels helps you assess where you stand financially. This guide breaks down total debt by age group, debt types, and provinces using Canadian financial data. See how your debt-to-income ratio compares and when you should be concerned.

Average Total Debt by Age Group (2026)

Age Group	Average Total Debt	Median Total Debt	% With Any Debt
18-25	$16,800	$8,200	62%
26-35	$74,200	$42,500	79%
36-45	$138,500	$112,000	84%
46-55	$108,400	$78,200	76%
56-65	$78,200	$45,600	64%
65+	$31,400	$8,500	47%
All ages	$78,600	$38,400	70%

Total debt includes mortgages, HELOCs, credit cards, auto loans, student loans, and other consumer debt. Source: Equifax Canada, Statistics Canada.

Debt Composition by Age

Ages 18-25: Starting Out

Debt Type	Average Amount	% With This Debt
Student loans	$12,400	42%
Credit cards	$2,100	48%
Auto loans	$8,200	18%
Other consumer	$1,800	22%
Mortgage	$4,200*	4%
Total	$16,800	62%

*Mortgage average among those with mortgages is much higher; low overall average reflects few homeowners at this age.

Ages 26-35: Building Phase

Debt Type	Average Amount	% With This Debt
Mortgage	$48,500	35%
Student loans	$18,500	38%
Auto loans	$12,400	42%
Credit cards	$4,800	65%
HELOC	$6,200	18%
Other consumer	$3,800	28%
Total	$74,200	79%

Ages 36-45: Peak Debt Years

Debt Type	Average Amount	% With This Debt
Mortgage	$98,400	52%
HELOC	$18,600	32%
Auto loans	$14,200	48%
Credit cards	$5,400	68%
Student loans	$8,200	18%
Other consumer	$4,800	25%
Total	$138,500	84%

This age group carries the highest average debt, driven primarily by mortgages.

Ages 46-55: Paying Down

Debt Type	Average Amount	% With This Debt
Mortgage	$72,400	48%
HELOC	$22,100	35%
Auto loans	$11,800	45%
Credit cards	$4,900	62%
Other consumer	$4,200	22%
Total	$108,400	76%

HELOC balances often peak here as homeowners access equity.

Ages 56-65: Pre-Retirement

Debt Type	Average Amount	% With This Debt
Mortgage	$52,100	38%
HELOC	$18,400	28%
Auto loans	$8,600	38%
Credit cards	$3,800	55%
Other consumer	$3,200	18%
Total	$78,200	64%

Ages 65+: Retirement

Debt Type	Average Amount	% With This Debt
Mortgage	$18,200	22%
HELOC	$8,400	18%
Auto loans	$4,200	24%
Credit cards	$2,600	42%
Other consumer	$1,800	12%
Total	$31,400	47%

More than half of those 65+ are completely debt-free.

Mortgage Debt by Age

Age Group	Avg Mortgage (Holders Only)	% With Mortgage	Avg Home Equity
18-25	$385,000	4%	$68,000
26-35	$425,000	35%	$85,000
36-45	$398,000	52%	$145,000
46-55	$285,000	48%	$285,000
56-65	$198,000	38%	$425,000
65+	$125,000	22%	$520,000

Mortgage balances are lower in later years due to repayment and older purchase prices.

Consumer Debt by Age

Consumer debt includes all non-mortgage debt: credit cards, auto loans, lines of credit, student loans, and other loans.

Age Group	Average Consumer Debt	Median Consumer Debt
18-25	$14,200	$6,800
26-35	$28,500	$18,400
36-45	$32,800	$22,100
46-55	$28,400	$18,600
56-65	$22,500	$12,400
65+	$12,400	$4,200
All ages	$24,200	$14,500

Credit Card Debt

Average Balance by Age

Age Group	Avg Balance (All)	Avg Balance (Revolvers*)	% Who Revolve
18-25	$2,100	$4,200	42%
26-35	$4,800	$7,800	48%
36-45	$5,400	$8,600	52%
46-55	$4,900	$8,200	45%
56-65	$3,800	$6,800	38%
65+	$2,600	$5,200	32%

*“Revolvers” carry a balance month-to-month rather than paying in full.

Credit Card Interest Costs

Balance	Monthly Interest (21% APR)	Annual Interest
$2,000	$35	$420
$5,000	$88	$1,050
$10,000	$175	$2,100
$20,000	$350	$4,200

Student Loan Debt

Category	Amount
Average at graduation (2026)	$28,000-32,000
Average balance, ages 25-34	$18,500
Median balance, ages 25-34	$14,200
% of 25-34 with student loans	38%
% of 35-44 with student loans	18%

Repayment Timeline

Strategy	Years to Repay $28,000
Minimum payments (~$300/mo)	12-15 years
Aggressive ($500/mo)	5-6 years
Very aggressive ($800/mo)	3-4 years

Auto Loan Debt

Age Group	Avg Auto Loan	% With Auto Loan	Avg Vehicle Price
18-25	$18,500	18%	$28,000
26-35	$26,200	42%	$42,000
36-45	$28,500	48%	$48,000
46-55	$24,800	45%	$46,000
56-65	$21,400	38%	$42,000
65+	$16,200	24%	$35,000

The average auto loan in Canada is $26,400 with a term of 72 months (6 years).

Debt-to-Income Ratios

Average Debt-to-Income by Age

Age Group	Debt-to-Income Ratio	Assessment
18-25	75%	Low (limited income)
26-35	126%	Moderate
36-45	192%	High (mortgage-driven)
46-55	142%	Moderate-high
56-65	115%	Moderate
65+	69%	Low
All ages	181%	High (historically)

What’s a Healthy Ratio?

Debt-to-Income	Assessment	Notes
Under 100%	Excellent	Manageable for most incomes
100-150%	Good	Typical for homeowners
150-200%	Fair	Monitor carefully
200-250%	Elevated	Prioritize debt repayment
250%+	Concerning	Significant financial risk

Total Debt Service Ratio (TDS)

Component	Guideline
Housing costs	Max 35% of gross income (GDS)
+ All other debt payments	Max 44% of gross income (TDS)

Lenders use these ratios to qualify mortgages and loans.

Debt by Province

Total Debt Per Capita

Province	Avg Total Debt	Avg Consumer Debt	Mortgage %
British Columbia	$98,400	$28,600	71%
Ontario	$92,100	$26,200	72%
Alberta	$84,500	$32,400	62%
Quebec	$58,200	$18,400	68%
Saskatchewan	$62,400	$24,800	60%
Manitoba	$54,600	$21,200	61%
Nova Scotia	$52,100	$22,400	57%
New Brunswick	$48,500	$20,600	58%
Newfoundland	$46,200	$21,800	53%
PEI	$44,800	$19,400	57%
Canada	$78,600	$24,200	69%

BC and Ontario have highest total debt (expensive housing), Alberta has highest consumer debt per capita.

Good Debt vs Bad Debt

Good Debt Characteristics

Aspect	Good Debt
Interest rate	Low (often below 6%)
Purpose	Builds assets or increases earning potential
Tax treatment	Often deductible
Examples	Mortgage, student loans, business investment
Typical terms	Long-term, fixed payments

Bad Debt Characteristics

Aspect	Bad Debt
Interest rate	High (15-30%)
Purpose	Consumption, depreciating assets
Tax treatment	Not deductible
Examples	Credit cards, payday loans, store financing
Typical terms	Revolving or short-term

Debt Hierarchy

Priority	Debt Type	Typical Rate	Pay Off
1	Payday loans	300-500%+	Immediately
2	Credit cards	19-29%	ASAP
3	Store credit	25-30%	ASAP
4	Personal loans	8-15%	Steadily
5	Auto loans	5-10%	Per schedule
6	Student loans	5-8%	Per schedule
7	HELOC	6-8%	Per strategy
8	Mortgage	4-7%	Per schedule

Debt-Free Canadians by Age

Age Group	% Completely Debt-Free	% No Consumer Debt
18-25	38%	52%
26-35	21%	35%
36-45	16%	28%
46-55	24%	38%
56-65	36%	52%
65+	53%	68%
All ages	30%	42%

Warning Signs of Too Much Debt

Warning Sign	Details
Minimum payments only	Can only afford minimum on credit cards
Using credit for basics	Paying for groceries, utilities on credit
Over credit limit	Regularly hitting or exceeding limits
Missed payments	Late or skipped payments
Debt rising despite payments	Balance not decreasing
Denied new credit	Rejected for loans or cards
Hiding debt	Not telling spouse/partner
Losing sleep	Stress impacting health

Improving Your Debt Position

Debt Repayment Strategies

Strategy	Description	Best For
Avalanche	Pay highest-interest first	Minimizing total interest
Snowball	Pay smallest balance first	Psychological wins
Consolidation	Combine debts into lower rate	Multiple high-rate debts
Balance transfer	Move to 0% promo card	Credit card debt

Quick Wins

Action	Impact
Negotiate lower rates	Call and ask — often works
Automate payments	Avoid late fees
Biweekly mortgage	Extra payment per year
Round up	Pay $500 instead of $467
Windfalls to debt	Tax refund, bonus → debt

How Your Debt Compares to Net Worth

Age Group	Avg Debt	Avg Net Worth	Debt % of Net Worth
18-25	$16,800	$24,000	70%
26-35	$74,200	$138,000	54%
36-45	$138,500	$365,000	38%
46-55	$108,400	$592,000	18%
56-65	$78,200	$845,000	9%
65+	$31,400	$928,000	3%

As you age, debt should shrink as a percentage of net worth.

Net Worth by Age Canada — Your total financial picture
Average Savings by Age Canada — How much should you have saved
Average Income by Age Canada — Compare your earning power
Debt Consolidation Guide — Combining multiple debts
Credit Score Guide — How debt affects your score
Student Loan Repayment — Strategies for graduates