Q2 2025 Credit Health: What Canadians Need to Know
Equifax Canada’s latest report offers good news for some, but highlights rising risks for others.

Signs of Stabilization in Q2 2025

In the second quarter of 2025, 1.4 million Canadians missed a credit payment. That’s 7,000 fewer than last quarter, but still 118,000 more than a year ago.

Mortgage holders are holding steady—non-mortgage borrowers, not so much.

The Widening Credit Gap

• 1 in 19 non-mortgage holders missed a payment vs. 1 in 37 mortgage holders.
• The gap grew from 45% in 2019 to 96% in 2025.
• Ontario & Alberta lead in delinquency rates—Ontario at 1.75%, Alberta at 1.98%.

Younger Canadians Hit Hardest

Canadians under 36 carry an average of $14,304 in non-mortgage debt, with delinquency rates increasing by 20% year-over-year. Rising costs and slower job growth are creating financial pressure points.

Other Key Credit Trends

• Consumer debt: $2.58 trillion (↑ 3.1% YoY)
• Mortgage originations: ↑ 15.3%, driven by refinancing
• Credit card spending: Slight decline among mortgage holders, but ↑ 0.14% for non-mortgage borrowers

What It Means for Peterborough & Ontario

Rising delinquency rates in the GTA, Hamilton, and Toronto highlight regional stress that could impact communities like Peterborough.

If you’re carrying high-interest debt or struggling with missed payments, now’s the time to act.

Quick Tips for Financial Health

• Automate payments: Avoid missed bills with autopay or reminders.
• Focus on high-interest debt: Pay down credit cards and loans first.
• Explore refinancing: Lower rates can free up your budget.
• Seek advice early: Credit counsellors and mortgage brokers can help create a plan.

Bottom Line

The good news: delinquency rates are no longer accelerating.
The bad news: younger and non-mortgage Canadians still face rising risks.

Stay proactive, stay informed, and take steps today to strengthen your financial future.