Updated: April 2025  |  bremo.io financial guides

Average Canadian Debt in 2025: Statistics and Context

Canada consistently ranks among the most indebted developed nations on a household basis. Understanding where the average stands — and how debt breaks down by type — can help you put your own financial situation in context.

Total Household Debt

Statistics Canada data shows total household debt in Canada regularly exceeds $2.5 trillion. Canadian household debt as a percentage of disposable income has been among the highest in the G7. The debt-to-disposable-income ratio hovered near or above 180% in recent years — meaning Canadians collectively owe about $1.80 for every dollar of annual disposable income.

Average Consumer (Non-Mortgage) Debt Per Person

Based on credit bureau and Statistics Canada data, the average Canadian consumer (excluding mortgages) carries approximately:

• Total non-mortgage debt: approximately $20,000–$23,000 per person
• Credit card balances: approximately $3,500–$4,500 per cardholder
• Lines of credit: this category is the largest single component of non-mortgage consumer debt
• Auto loans: average balance of $19,000–$22,000 for those with car loans

These are averages — they are heavily skewed by those with very high debt levels. The median (middle point) is often lower than the average.

Average Mortgage Debt

Mortgage debt dominates household balance sheets in Canada due to high housing prices, particularly in urban centres. The average mortgage balance in Canada is approximately $300,000–$330,000, though this varies enormously by region:

• Greater Toronto Area and Greater Vancouver: average mortgage balances well above $500,000
• Prairie provinces: significantly lower, often $200,000–$280,000
• Atlantic provinces: generally lower, often $150,000–$220,000

Insolvency Statistics

The Office of the Superintendent of Bankruptcy publishes insolvency filings data annually. In recent years:

• Over 120,000 Canadians file for insolvency (consumer proposals + bankruptcies) each year
• Consumer proposals have grown significantly as a share of filings — now representing over 70% of all consumer insolvency filings
• The average consumer proposal involves approximately $50,000–$65,000 in total debt
• Bankruptcy filings have been declining as consumer proposals become better understood

Debt by Age Group

Debt levels and composition vary significantly by life stage:

• Under 35: Student loans, credit cards, and early auto loans dominate. Mortgage acquisition often begins in this age group.
• 35–54: Peak borrowing years. Mortgages, HELOCs, car loans, and accumulated credit card debt.
• 55–64: Pre-retirement, ideally reducing debt. Many Canadians carry significant mortgage and HELOC debt into this period.
• 65+: Seniors who carry high levels of consumer debt face compounding risk on fixed incomes.

Interest Rate Impact Since 2022

The Bank of Canada's aggressive rate increases beginning in 2022 significantly increased the carrying cost of variable-rate mortgages and lines of credit. Many Canadians who took on debt at sub-2% rates in 2020–2021 found their payments rising substantially as rates peaked above 5% in 2023. This contributed to increased insolvency filings in 2023–2024.

Signs Your Debt Is Becoming a Problem

Statistics about averages are less important than your individual situation. Warning signs include:

• Minimum payments consume more than 15% of your net income
• Your total debt (excluding mortgage) is growing year over year despite making payments
• You are using one form of credit to pay another
• You have not saved anything in the past 12 months
• You cannot manage an unexpected expense of $500 without borrowing