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.
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