Statistics Canada reports household debt-to-income ratio ticked higher in Q1

Credit cards shown on Oct. 6, 2022. THE CANADIAN PRESS/Andrew Vaughan

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The latest TransUnion debt report shows total debt continued to grow in the first quarter compared with the year before, driven mainly by young people and newcomers.   

The credit-tracking agency says gen Z consumers saw their outstanding balances grow 30.6 per cent from the prior year.

The report says total outstanding debt grew 4.7 per cent to $2.5 trillion in the first quarter year-over-year.

Delinquencies, or missed payments, were also up 11 basis points year-over-year to 2.7 per cent — mainly driven by new-to-credit consumers.

The report also shows subprime consumers continued to struggle as their delinquency rates rose at significantly higher rates than prime and above-prime consumers.

Matt Fabian, director of financial services research at TransUnion Canada, says higher balances from high-risk credit consumers signal a critical moment for lenders to reassess risk strategies.

This report by ´ºÉ«Ö±²¥was first published May 28, 2025.

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