The Debt Burden<\/strong><\/h2>\nAccording to various sources, the overall debt burden for many Canadians remains on the rise \u2013 compounded by ongoing costs of living. Prices over time, just keep going up.\u00a0<\/p>\n
In this post, I am curious to know from readers:<\/p>\n
\n- What is your debt burden? or<\/strong><\/em><\/li>\n
- If you have no debt at all, when and how did you get rid of your debt burden?<\/em><\/li>\n<\/ul>\n
The Debt Burden<\/strong><\/h3>\nHere are some recent selected articles on this subject:<\/p>\n
From CMHC<\/a>, fall 2024: @CMHC_ca<\/p>\n\n- \n
\nMortgage debt:<\/strong>\u00a0Canada\u2019s mortgage debt reached $2.2 trillion as of July 2024, growing 3.5% year-over-year. Despite lower interest rates, high borrowing costs and elevated home prices continue to limit buyer activity.<\/p>\n<\/blockquote>\n<\/li>\n- \n
\nBorrower behavior:<\/strong>\u00a0Canadians are increasingly opting for shorter-term fixed-rate mortgages, with 3- to 4-year terms dominating the market. Five-year fixed mortgages account for only 12% of new loans.<\/p>\n<\/blockquote>\n<\/li>\n- \n
\nDelinquency rates:<\/strong>\u00a0Mortgage delinquency rates have risen slightly to 0.2%, though they remain below pre-pandemic levels. Auto loan delinquencies, at 2.42%, pose a risk for further increases.<\/p>\n<\/blockquote>\n<\/li>\n- \n
\nRenewal challenges:<\/strong>\u00a0Over 2.2 million Canadian homeowners face higher payments when their mortgages, signed during historically low rates, come up for renewal in 2025-2026.<\/p>\n<\/blockquote>\n<\/li>\n<\/ul>\nFrom LoansCanada<\/a>, summer 2024: @LoansCanada<\/p>\nMaybe not surprisingly, Canadians aged 35-44 who are busy establishing their careers; acquiring real estate to call home; potentially raising a family; carry the highest average debt burden in Canada: reaching a whopping $541,851.\u00a0<\/strong><\/p>\n![\"The](\"https:\/\/www.myownadvisor.ca\/wp-content\/uploads\/2025\/03\/The-Debt-Burden.png\")
<\/p>\n
Source\/Attribution: https:\/\/loanscanada.ca\/debt\/average-debt-by-age-canada\/<\/em><\/p>\nMore recently, from February 2025<\/a>, I read Canadians carry thousands in credit card debt: @MoneySense<\/p>\n\n\u201cThe average credit card balance for Canadians in the third quarter of 2024 was $4,562, according to TransUnion. This is up 6.97% from the previous year, putting credit card debt as the fastest-growing type of consumer debt\u2026.\u201d<\/p>\n<\/blockquote>\n
And\u2026from CBC, February 2025<\/a>:<\/p>\n\n\u201cThe number of Canadians in debt is on the rise across the country and, according to a new report, there\u2019s a growing gap between those who have benefited from declining interest rates, and those who have fallen behind from the higher costs.\u201d<\/p>\n
+<\/p>\n
\u201cMeanwhile, missed payments on credit cards, credit lines and auto loans are on the rise among non-homeowners who are young, lower-income, or renting or living with family.\u201d<\/p>\n<\/blockquote>\n
Ouch.\u00a0<\/p>\n
On a personal note, my debt burden existed until late-December 2023, after our final mortgage payment was confirmed in early January 2024 but that was a multi-year journey for sure.<\/em><\/p>\n
The Debt Burden<\/strong><\/h3>\nHere are some recent selected articles on this subject:<\/p>\n
From CMHC<\/a>, fall 2024: @CMHC_ca<\/p>\n\n- \n
\nMortgage debt:<\/strong>\u00a0Canada\u2019s mortgage debt reached $2.2 trillion as of July 2024, growing 3.5% year-over-year. Despite lower interest rates, high borrowing costs and elevated home prices continue to limit buyer activity.<\/p>\n<\/blockquote>\n<\/li>\n- \n
\nBorrower behavior:<\/strong>\u00a0Canadians are increasingly opting for shorter-term fixed-rate mortgages, with 3- to 4-year terms dominating the market. Five-year fixed mortgages account for only 12% of new loans.<\/p>\n<\/blockquote>\n<\/li>\n- \n
\nDelinquency rates:<\/strong>\u00a0Mortgage delinquency rates have risen slightly to 0.2%, though they remain below pre-pandemic levels. Auto loan delinquencies, at 2.42%, pose a risk for further increases.<\/p>\n<\/blockquote>\n<\/li>\n- \n
\nRenewal challenges:<\/strong>\u00a0Over 2.2 million Canadian homeowners face higher payments when their mortgages, signed during historically low rates, come up for renewal in 2025-2026.<\/p>\n<\/blockquote>\n<\/li>\n<\/ul>\nFrom LoansCanada<\/a>, summer 2024: @LoansCanada<\/p>\nMaybe not surprisingly, Canadians aged 35-44 who are busy establishing their careers; acquiring real estate to call home; potentially raising a family; carry the highest average debt burden in Canada: reaching a whopping $541,851.\u00a0<\/strong><\/p>\n<\/p>\n
Source\/Attribution: https:\/\/loanscanada.ca\/debt\/average-debt-by-age-canada\/<\/em><\/p>\nMore recently, from February 2025<\/a>, I read Canadians carry thousands in credit card debt: @MoneySense<\/p>\n\n\u201cThe average credit card balance for Canadians in the third quarter of 2024 was $4,562, according to TransUnion. This is up 6.97% from the previous year, putting credit card debt as the fastest-growing type of consumer debt\u2026.\u201d<\/p>\n<\/blockquote>\n
And\u2026from CBC, February 2025<\/a>:<\/p>\n\n\u201cThe number of Canadians in debt is on the rise across the country and, according to a new report, there\u2019s a growing gap between those who have benefited from declining interest rates, and those who have fallen behind from the higher costs.\u201d<\/p>\n
+<\/p>\n
\u201cMeanwhile, missed payments on credit cards, credit lines and auto loans are on the rise among non-homeowners who are young, lower-income, or renting or living with family.\u201d<\/p>\n<\/blockquote>\n
Ouch.\u00a0<\/p>\n
On a personal note, my debt burden existed until late-December 2023, after our final mortgage payment was confirmed in early January 2024 but that was a multi-year journey for sure.<\/em><\/p>\n
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- \n
\n
Mortgage debt:<\/strong>\u00a0Canada\u2019s mortgage debt reached $2.2 trillion as of July 2024, growing 3.5% year-over-year. Despite lower interest rates, high borrowing costs and elevated home prices continue to limit buyer activity.<\/p>\n<\/blockquote>\n<\/li>\n
- \n
\n
Borrower behavior:<\/strong>\u00a0Canadians are increasingly opting for shorter-term fixed-rate mortgages, with 3- to 4-year terms dominating the market. Five-year fixed mortgages account for only 12% of new loans.<\/p>\n<\/blockquote>\n<\/li>\n
- \n
\n
Delinquency rates:<\/strong>\u00a0Mortgage delinquency rates have risen slightly to 0.2%, though they remain below pre-pandemic levels. Auto loan delinquencies, at 2.42%, pose a risk for further increases.<\/p>\n<\/blockquote>\n<\/li>\n
- \n
\n
Renewal challenges:<\/strong>\u00a0Over 2.2 million Canadian homeowners face higher payments when their mortgages, signed during historically low rates, come up for renewal in 2025-2026.<\/p>\n<\/blockquote>\n<\/li>\n<\/ul>\n
From LoansCanada<\/a>, summer 2024: @LoansCanada<\/p>\n
Maybe not surprisingly, Canadians aged 35-44 who are busy establishing their careers; acquiring real estate to call home; potentially raising a family; carry the highest average debt burden in Canada: reaching a whopping $541,851.\u00a0<\/strong><\/p>\n
<\/p>\nSource\/Attribution: https:\/\/loanscanada.ca\/debt\/average-debt-by-age-canada\/<\/em><\/p>\n
More recently, from February 2025<\/a>, I read Canadians carry thousands in credit card debt: @MoneySense<\/p>\n
\n
\u201cThe average credit card balance for Canadians in the third quarter of 2024 was $4,562, according to TransUnion. This is up 6.97% from the previous year, putting credit card debt as the fastest-growing type of consumer debt\u2026.\u201d<\/p>\n<\/blockquote>\n
And\u2026from CBC, February 2025<\/a>:<\/p>\n
\n
\u201cThe number of Canadians in debt is on the rise across the country and, according to a new report, there\u2019s a growing gap between those who have benefited from declining interest rates, and those who have fallen behind from the higher costs.\u201d<\/p>\n
+<\/p>\n
\u201cMeanwhile, missed payments on credit cards, credit lines and auto loans are on the rise among non-homeowners who are young, lower-income, or renting or living with family.\u201d<\/p>\n<\/blockquote>\n
Ouch.\u00a0<\/p>\n
On a personal note, my debt burden existed until late-December 2023, after our final mortgage payment was confirmed in early January 2024 but that was a multi-year journey for sure.<\/em><\/p>\n
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