Canadian household debt hits $1.80 for every dollar of income
Statistics Canada reports household credit market debt outpaced income for the sixth straight quarter, reaching 179.6 per cent in Q1 2026.
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Canadian households are carrying more debt relative to their incomes than ever, according to Statistics Canada data released Friday.
The seasonally adjusted ratio of household credit market debt as a proportion of household disposable income rose 0.9 percentage points to 179.6 per cent in the first quarter of 2026. In practical terms, there was roughly $1.80 in credit market debt for every dollar of household disposable income — a sixth consecutive quarter of increases.
The household debt service ratio, measured as total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, was 14.75 per cent in Q1, up from 14.68 per cent in the fourth quarter of 2025.
Household credit market borrowing, which includes consumer credit and mortgage and non-mortgage loans, totalled $35.5 billion in the first quarter, up from $34.5 billion in the final quarter of 2025.
Net originations of mortgage loans fell $22.6 billion in the quarter compared with $26.3 billion in Q4 2025, offset by increases in consumer credit and non-mortgage debt.
The data underscores growing financial pressure on Canadian families as debt continues to climb faster than income.