Insolvency volumes reach highest level since 2009: Equifax Canada

追加: 2026-05-27

[00:00:00]New data from Equifax Canada shows insolvency volumes reach their highest level since 2009.

[00:00:05]>> numbers just out this morning and the report found that homeowner insolvency jumped more than 11% from the fourth quarter of 2025. Total consumer debt up to $2.66 trillion. That's up 4% year-over-year. Mortgage delinquency balances rose 32% nationally, including 52% here in Ontario, while about 1 and 1/2 million Canadians missed at least one credit payment in the first quarter of the year.

[00:00:30]Okay, so joining us live now is Rebecca Oaks, the vice president of advanced analytic analytics, pardon, at Equifax Canada. Rebecca, thanks for taking the time to join us. What do these findings kind of show you or paint a picture of in terms of Canadians and their credit scores right now? It's kind of a split picture, isn't it?

[00:00:50]Yeah, it definitely is. When we look at the first quarter, there's really mixed signals that we are seeing. So, on one hand, there actually has been some positive shifts in terms of consumer credit usage. We're seeing a bit of a pullback in terms of new credit openings on things like credit cards and actually auto loans as well. But as you mentioned, you know, the flip side to that is there are still pockets of consumers really experiencing financial stress right now. Those insolvency numbers are definitely a concern and we are still seeing miss payments rising in certain areas.

[00:01:20]Rebecca, it looks to me like Canadians understand that they're maybe in a little bit over their heads when it comes to their debt, but they also feel like they don't have many options to sort of try to manage it or try to deal with it. Is that a kind of fair analysis of what these numbers show?

[00:01:34]Yeah, absolutely. You know, when we look at things like those new credit card openings and we've seen them drop to a four-year low. That normally indicates a few things. You know, one of those is a bit of a lack of consumer confidence and we do think that probably is happening right now. But at the same time, you know, as you mentioned, some consumers are showing a little bit of restraint, you know, and actually pulling back in showing some financial discipline to really help them in this current situation. Mhm. Yeah, so they're maybe pulling back on, you know, frivolous spending, uh, signing up for credit cards, but the mortgage delinquencies, uh, tell us more about that.

[00:02:08]Yes, so that that really is a trend we've seen for quite a few quarters now.

[00:02:11]Now, we all know that during the pandemic, interest rates were super low.

[00:02:15]Uh, and what we have seen in 2025 and into this year is just that, you know, as those interest rates are higher than they were a few years ago, as consumers are coming up to renew their mortgages, there is unfortunately a bit of a payment shock, and that is really targeted in areas with high mortgage balances. So, you know, Ontario is one, British Columbia is another. And, you know, as those payments uh, are going up, we're just seeing some consumers are unfortunately unable to cope with those new payment levels. Rebecca, perhaps help our audience understand the difference between insolvency, delinquency, and bankruptcy, because those are three words I think sort of get associated. There's probably good overlap in the Venn diagram, but just let people know kind of what that actually means.

[00:02:55]Yeah, sure. So, delinquency is really when we're talking about miss payments, and there's a few ways we look at it. We look at what we call early delinquency, which is, you know, maybe you've missed one payment on your credit card, uh, versus more severe signs of financial stress. That's, you know, typically we look at maybe you've missed three payments or more. When it comes to insolvency, there's two types of insolvency primarily. There's bankruptcy, which is a full bankruptcy, and then there's what we call consumer proposal, and that is where it's kind of more of a structured payment arrangement with your lender. It protects some of your assets like your home, and, you know, really it's the consumer proposal side of insolvency where we've seen increases over the last few years.

[00:03:33]>> Mhm. And Rebecca, for people watching this thinking, "Oh no, I am one of these people in this boat. Uh, I I have had a few delinquencies, but I don't want this to affect my credit score cuz I still rely on that." What can they do to protect themselves at this point?

[00:03:48]Yeah, I mean, unfortunately, if you do miss payments, it's likely to have some impact on your credit score. Um, but the number one thing is really speak to your lender. If you have a change in circumstances, you know, lenders will help you and they will assist you and they will come up with some way of payment arrangements, alternatives to really help you manage um, your financial situation. There were also a lot of organizations out there that can help you, you know, many of them free of charge just to offer you some advice, particularly on things like budgeting to help you get out of that situation.

[00:04:14]Okay, it seems like a few of us are in it, that's for sure. Rebecca Oakes is Vice President of Advanced Analytics at Equifax Canada. Rebecca, appreciate this time and thanks for breaking down these numbers.