New data from Equifax Canada reveals drag of mortgage holders in Ontario facing deepening credit stress
Canadian consumer debt climbed to $2.68 trillion in the second quarter of 2026, up 4.18 per cent year-over-year, according to newly-released data.
Non-mortgage debt rebounded seasonally to $712.2 billion in Q2 2026, a 4.8 per cent increase from the same period a year earlier and a 2.09 per cent rise from Q1 2026.
The national 90-plus-day non-mortgage balance delinquency rate edged down to 1.76 per cent from 1.79 per cent in Q1, a modest improvement, though still elevated against the 1.70 per cent recorded in Q2 2025.
But Equifax Canada's Q2 2026 Market Pulse Quarterly Consumer Credit Trends and Insights report reveals that headline stability masks a deepening fault line in Ontario, where mortgage holders are increasingly struggling to manage their broader credit obligations.
"Between March and June, we typically see non-mortgage debt levels rising and missed payments falling," said Rebecca Oakes, Vice President of Advanced Analytics at Equifax Canada, in Toronto. "This year has followed a similar pattern as consumers remain cautious, particularly around major purchases. And while rising delinquency levels have started to slow, pockets of growing stress are still evident in some areas."
Ontario mortgage holders carry growing burden
Mortgage holders in Ontario have seen 90-plus-day missed mortgage payments rise every single quarter for the past four years and the ripple effect is now showing up clearly in non-mortgage debt.
Nationally, non-mortgage debt held by mortgage holders reached $304.6 billion in Q2, up 1.9 per cent from Q1. Their 90-plus-day non-mortgage delinquency rate edged to 0.77 per cent, a 0.4 per cent increase from Q1 and a 12.5 per cent rise year-over-year.
Ontario's figure was considerably more alarming: the province's equivalent delinquency rate hit 0.86 per cent, a 2.2 per cent rise from Q1 and a stark 27 per cent jump compared to Q2 2025. Strip Ontario out of the national calculation, and the year-over-year increase falls to just 2.1 per cent — a figure that underscores how dramatically the province is diverging from the rest of the country.
"The data clearly shows that the persistent pressure of higher interest rates and mortgage renewal shocks have impacted many homeowners for several years," Oakes noted. "Ontario continues to stand out, with some mortgage holders struggling to keep up with other credit obligations."
Wealth Professional Canada has previously covered how rising renewal rates are reshaping client financial plans across Canada.
Canadians without a mortgage presented a more stable picture nationally, with their 90-plus-day non-mortgage delinquency rate improving 2.3 per cent quarter-over-quarter to 2.5 per cent and remaining largely unchanged year-over-year.
Ontario, however, bucked that trend too with non-mortgage delinquency rates for non-mortgage holders in the province up 3.0 per cent compared to 12 months ago.
First-time buyers increasingly turn to family for help
A longer-term structural shift is also becoming more pronounced in the data. The proportion of first-time homebuyers using joint mortgages climbed from 57.6 per cent in 2016 to 70.9 per cent through Q2 2026; a near 13-percentage-point increase over a decade that reflects how affordability constraints have reshaped the path to homeownership.
Among first-time buyers under 35, Ontario and British Columbia had roughly twice the share of joint mortgages involving co-borrowers 20 or more years apart compared with the rest of Canada.
It’s a pattern that points heavily toward parental or family financial support becoming a structural feature of entry into high-cost housing markets.
"For many younger Canadians, buying a first home seems to increasingly mean doing it with someone else," Oakes said. "Family support appears to play a larger role in higher-cost markets."
Credit card balances climb, but repayment holds steady for now
Credit card debt swelled to $134.2 billion in Q2 2026, up from $130.6 billion in Q1, as seasonal consumer spending picked up. Inflation-adjusted average credit card spending per consumer reached $2,192 by quarter's end; 1.4 per cent above the level recorded 12 months earlier.
The 90-plus-day national credit card delinquency rate improved marginally to 4.19 per cent from 4.28 per cent in Q1, though it remains 6.8 per cent higher than a year ago. Sixty-five per cent of consumers paid their balance in full each month, and minimum payment rates held steady at 4 per cent.
Those aggregate numbers, however, may be concealing underlying fragility. A separate Equifax Canada Consumer Survey found that 25 per cent of respondents expect to make only minimum payments in coming months, while a further 7 per cent believe they are likely to fall behind.
"When we compare our recent survey to the data we are seeing today, it highlights that although the numbers are currently stable, consumers may be worried about maintaining this position," Oakes explained. "There seems to be a significant amount of uncertainty in the current environment."
Auto loan caution persists despite seasonal lift
The automotive sector recovered some momentum in Q2, with auto loan balances, spanning both captive financing and bank loans, rising to $179.1 billion, up 2.2 per cent from Q1 and 4.9 per cent year-over-year.
New auto loan originations, however, fell 9.2 per cent compared to Q2 2025, continuing a trend that was apparent in the first quarter as well. Average new loan amounts increased from $34,713 to $36,979 year-over-year, contributing to the rising overall balance despite the drop in volume.
"Even with financing incentives and lower used vehicle prices, many consumers appear to be holding off on big purchases like new vehicles and waiting to see what the economy will bring," Oakes said. "Economic conditions and employment uncertainty continue to influence household decisions."
The overall 90-plus-day auto loan delinquency rate improved slightly to 1.10 per cent from 1.11 per cent in Q1, with the used vehicle segment driving that improvement. New auto loans, by contrast, saw a modest uptick in severe delinquency.
