Average Household Debt in Canada
| Metric | Amount |
|---|
| Average household debt (total) | ~$185,000 |
| Average mortgage debt | ~$160,000 |
| Average non-mortgage debt | ~$22,000 |
| Debt-to-income ratio | ~180% |
| Total Canadian household debt | $2.4+ trillion |
Household Debt Breakdown
By Debt Type
| Type of Debt | Average Amount | % of Total |
|---|
| Mortgage | $160,000 | 73% |
| HELOC | $15,000 | 7% |
| Auto loans | $12,000 | 5.5% |
| Credit cards | $4,200 | 2% |
| Student loans | $3,500 | 1.5% |
| Personal loans | $8,000 | 4% |
| Lines of credit | $15,000 | 7% |
Mortgage vs Non-Mortgage
| Category | Total Outstanding | Per Household (with debt) |
|---|
| Mortgage debt | $1.8 trillion | ~$350,000 |
| Consumer debt | $600+ billion | ~$23,000 |
The majority of household debt is mortgage debt secured by home equity.
Average Debt by Age
| Age Group | Total Debt | Mortgage | Non-Mortgage |
|---|
| 18–24 | $15,000 | $5,000 | $10,000 |
| 25–34 | $145,000 | $120,000 | $25,000 |
| 35–44 | $230,000 | $200,000 | $30,000 |
| 45–54 | $210,000 | $170,000 | $40,000 |
| 55–64 | $135,000 | $100,000 | $35,000 |
| 65+ | $55,000 | $35,000 | $20,000 |
Debt Lifecycle Pattern
| Stage | Age | Typical Debt Profile |
|---|
| Education | 18–24 | Student loans, first credit card |
| Career start | 25–34 | First mortgage, auto loan |
| Peak debt | 35–44 | Largest mortgage, family expenses |
| Debt paydown | 45–54 | Mortgage reduction, may still be high |
| Pre-retirement | 55–64 | Accelerated paydown |
| Retirement | 65+ | Should be minimal |
Average Debt by Province
| Province | Average Household Debt | Debt-to-Income |
|---|
| British Columbia | $220,000 | 205% |
| Ontario | $215,000 | 195% |
| Alberta | $165,000 | 175% |
| Quebec | $120,000 | 155% |
| Manitoba | $110,000 | 150% |
| Saskatchewan | $125,000 | 160% |
| Nova Scotia | $105,000 | 160% |
| New Brunswick | $95,000 | 155% |
| Newfoundland | $90,000 | 150% |
| PEI | $100,000 | 155% |
BC and Ontario have higher debt due to expensive housing markets.
Credit Card Debt Statistics
| Metric | Value |
|---|
| Average balance (all cardholders) | $2,100 |
| Average balance (carrying balance) | $4,200 |
| % who carry a balance | ~40% |
| Average interest rate | 19–22% |
| Total credit card debt | $100+ billion |
Credit Card Debt by Age
| Age Group | Average Balance |
|---|
| 18–24 | $1,800 |
| 25–34 | $3,500 |
| 35–44 | $5,200 |
| 45–54 | $5,800 |
| 55–64 | $4,500 |
| 65+ | $3,200 |
Peak credit card debt is typically in the 45–54 age range.
Student Loan Debt
| Metric | Value |
|---|
| Average student debt at graduation | $28,000 |
| Median student debt | $17,500 |
| Average debt (Bachelor’s) | $24,000 |
| Average debt (Graduate) | $38,000 |
| Total student debt in Canada | $20+ billion |
Federal student loan interest rate (2026): Prime + 0% (effectively prime rate).
Auto Loan Debt
| Metric | Value |
|---|
| Average auto loan | $35,000 |
| Average monthly payment | $650 |
| Average loan term | 72 months |
| Total auto debt | $120+ billion |
Auto Debt by Province
| Province | Average Auto Debt |
|---|
| Alberta | $42,000 |
| Ontario | $38,000 |
| British Columbia | $36,000 |
| Quebec | $28,000 |
| Prairie provinces | $35,000 |
| Atlantic provinces | $25,000 |
Albertans carry the highest auto debt on average.
HELOC and Line of Credit Debt
| Type | Average Balance | Average Limit |
|---|
| HELOC | $65,000 | $150,000 |
| Personal line of credit | $12,000 | $25,000 |
Many Canadians use HELOCs as emergency funds or for major expenses.
Canada’s Debt-to-Income Ratio
Historical Trend
| Year | Debt-to-Income Ratio |
|---|
| 2000 | 110% |
| 2008 | 150% |
| 2015 | 165% |
| 2020 | 175% |
| 2026 | ~180% |
International Comparison
| Country | Household Debt-to-Income |
|---|
| Switzerland | 220% |
| Australia | 200% |
| Canada | 180% |
| Norway | 175% |
| UK | 145% |
| USA | 100% |
| Germany | 85% |
Canada has high household debt relative to income, though much is secured by home equity.
Are Canadians Overleveraged?
Concerning Signs
| Indicator | Status |
|---|
| Debt-to-income | Near record highs |
| Interest rate sensitivity | High — many variable mortgages |
| Home price dependence | Debt backed by volatile asset |
| Consumer debt growth | Outpacing income growth |
Mitigating Factors
| Factor | Impact |
|---|
| Home equity | Debt backed by substantial assets |
| Mortgage quality | Most mortgages are performing |
| Employment | Low unemployment supports debt service |
| Net worth | Canadians’ assets exceed liabilities |
Debt Payment Burden
How Much Income Goes to Debt
| Debt Type | Avg Monthly Payment | As % of Income |
|---|
| Mortgage | $2,100 | 30–35% |
| Auto loan | $650 | 10–12% |
| Credit cards (min) | $125 | 2–3% |
| Total debt service | $3,000–$3,500 | 45–50% |
Many Canadian households spend more than the recommended 40% of gross income on debt payments.
How to Reduce Your Debt
Short-Term Strategies
| Strategy | Impact |
|---|
| Debt avalanche | Pay highest interest first |
| Debt snowball | Pay smallest balance first (motivation) |
| Balance transfer | 0% promo rates reduce interest |
| Negotiate rates | Call card issuers |
Long-Term Approaches
| Approach | Best For |
|---|
| Accelerate mortgage payments | Building equity |
| RRSP refund to debt | Tax-efficient paydown |
| Consolidation loan | Lower interest rate |
| Consumer proposal | Unmanageable debt |
Warning Signs of Too Much Debt
| Sign | Action Needed |
|---|
| Can’t pay minimums | Seek credit counselling |
| Using credit for basics | Budget review urgently |
| Debt-to-income over 40% | Reduce debt or increase income |
| No emergency fund | Build 3–6 months expenses |
| Stress over debt | Free counselling available |
Where to Get Help
| Resource | Service |
|---|
| Credit Counselling Canada | Free debt advice |
| Licensed Insolvency Trustee | Consumer proposals, bankruptcy |
| Financial Consumer Agency | Information and resources |
| 211 Canada | Local financial help referrals |
Key Statistics Summary
| Metric | Canada 2026 |
|---|
| Total household debt | $2.4+ trillion |
| Average household debt | ~$185,000 |
| Debt-to-income ratio | ~180% |
| Average credit card debt | $4,200 |
| Average mortgage | $350,000 (those with mortgages) |
| % with no debt | ~25% of households |
Data sources: Statistics Canada, Bank of Canada, Equifax Canada
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