Insolvency volumes hit highest level since 2009

Added: 2026-05-27

[00:00:01]New data from Equifax Canada shows insolvency volumes reach their highest levels since 2009 up more than 18% year-over-year and mortgage holders stress is becoming much more visible.

[00:00:13]Joining me now to share some of the Manitoba specific data in this new report out today is Rebecca Oakes, vice president of advanced analytics at Equifax Canada. Rebecca, good to speak with you.

[00:00:24]Thank you for having me. Uh, first let's start with some of the key findings out of Manitoba. What stands out to you?

[00:00:30]Well, I think when we look at Manitoba, we see a few variations compared to the national average across Canada. So, first of all, when we look at things like non-mortgage debts, uh, the average per consumer tends to be that little bit lower in Manitoba, which is a little bit of good news. Um, and we also see in terms of some of things like missed payments on mortgages uh, and even to a degree some of the non-mortgage debt actually that tends to be a little bit lower as well. So, a little bit of good news um, on the Manitoba side. What does uh, this data kind of tell us about consumers here in Manitoba?

[00:01:04]Well, you know, I think money across Manitoba maybe you're using credit a little bit differently to perhaps um, some of the other areas of Canada. So, when we look at things like unsecured lines of credit, there's a little bit less usage and that's kind of one of the reasons why we see those average debt levels that little bit lower. Um, so that's kind of quite positive. You know, I think one of the interesting things when we look at things like the mortgage side, obviously mortgage balances tend to be that little bit lower as well, which can kind of maybe help a little bit in terms of some of the impact we've seen recently of interest rates, maybe a little bit less impact um, happening for for for kind of those those consumers in Manitoba. Um, but you know, it just kind of vary and depend on what metrics you're actually looking at.

[00:01:46]Overall, when you look across the country, how would you rate household financial stress right now?

[00:01:52]You know, it's really a bit of a a mixed a mixed a mixed thing.

[00:01:57]Um, you know, our our latest report, which goes to the end of March, kind of calls out a few things. First of all, it it kind of talks to uh we're seeing consumers maybe pulling back a little bit in terms of credit usage, things like new credit cards, um those volumes are down, new auto loans are down, which kind of tells us maybe there's a little bit of less consumer confidence across across Canada right now. Um but and it but it really depends what province you are in. If you look at areas like Ontario or British Columbia, where we've had really hot housing markets and perhaps they've been a little bit more impacted um in terms of the interest rate situation over the last few years, they're still really struggling on things like their mortgage repayments and we're seeing those mispayment levels rising, whereas other areas like Quebec and Saskatchewan, they're actually doing the opposite.

[00:02:42]We're seeing mispayments come down. So, it's kind of varies a little bit depending on exactly where you are living in Canada currently. Are these numbers concerning?

[00:02:52]You know, yes and no. You know, I think, you know, there there definitely has been a bit of a roller coaster when you think about all the macro macroeconomic headwinds that we've had over the last 12 to 18 months. And so, actually, our Q1 numbers have some positive signs in there, you know, things like credit card repayments, we're seeing the percentage of consumers paying in full, that's actually gone up a little bit. Those making minimum payments has gone down a little bit. So, you know, there is some stabilization that we're seeing. I think the challenge is that, you know, like the insolvency numbers, there still is some significant stress out there.

[00:03:26]And what's really concerning for us is what's going to happen over the next few months, you know, we do know there's a lot of global uncertainty from a macroeconomic standpoint right now. We all experienced the gas price rises, you know, is that going to lead to more inflation, which maybe could kind of push some of these individuals maybe a little bit kind of on on kind of, you know, the the edge the edge a little bit. Could it push them back into financial stress? And that's what we're really concerned about. Any advice given that situation?

[00:03:54]Well, unfortunately, I don't think I can solve for the global side of things. You know, if you are consumer though that maybe is worried about your finances, we always, you know, say speak to your lender, get some external support and help. Um, you know, I think a lot of people get embarrassed or worried about, you know, when they are struggling with their finances, but we're not all experts in in in kind of managing debt.

[00:04:15]So, speak to some experts that are out there. There are plenty of free organizations that can help. Yeah, reach out for help. You're definitely not alone uh based on this new report.

[00:04:23]Rebecca, thanks so much for your time and insight tonight. It was great speaking with you.

[00:04:27]Thank you so much.