An endless debt cycle: Canadians seeing rising rates when it comes to defaulting on non-mortgage bill payments

Debt keeps on mounting

According to newly released data from Equifax, Canadians are struggling with debt like never before. In the first months of 2025, there has been a concerning 17.06% increase in people who are either late on payments or completely defaulting on their bills compared to last year.

The GTA is particularly affected, leading the nation in the rate of mortgage payments that are more than 90 days overdue. But the problem extends beyond housing — Ontario residents are showing the highest increase in defaults across various types of debt, including credit cards and auto loans year-over-year.

This troubling trend isn't new for Ontario, which has consistently shown mounting debt problems over recent years.

Data shows a significant increase in non-mortgage payment defaults across Canada, with some provinces experiencing dramatic spikes. Ontario leads the nation with a 24% rise in delinquencies during Q1 2025 compared to the previous year. Alberta follows with a 15.93% increase, while Quebec rounds out the top three at 13.95%. British Columbia and the Western Region also saw notable increases of 12.63 and 12.49% respectively.

In contrast, some regions maintained relatively stable delinquency rates. Newfoundland reported a minimal increase of 0.48%, while Manitoba saw a modest 2.04% rise in missed payments.

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Best and worst cities for delinquent payments

At a municipal level, Toronto stands out with a 24.28% year-over-year increase in delinquency rates, significantly higher than other major Canadian cities. For comparison, St. John's experienced only a slight uptick of 1.19% during the same period.

For non-mortgage debt in Q1 2025, Fort McMurray leads Canadian cities in delinquency rates at 2.56% — Edmonton is in a close second at 2.26% with Toronto rounding out the top three at 2.17%. This indicates significant challenges in debt repayment across major urban centers.

Looking at provincial statistics, Alberta shows the highest delinquency rate at 1.97% in Q1 2025. Saskatchewan follows at 1.82%, while New Brunswick and Ontario report rates of 1.77% and 1.72% respectively.

In terms of non-mortgage consumer debt, Fort McMurray residents carry the heaviest burden among analyzed cities, with an average of $37,269, while Toronto ranks seventh out of nine cities studied, with residents owing an average of $21,048. At the provincial level, Newfoundland leads with the highest average personal non-mortgage debt at $24,770, while Ontario sits at seventh place among provinces with an average of $22,543 per person.

Sources

1. BNN Bloomberg: Toronto housing among least affordable on this global index. Here’s what experts say needs to change (June 8, 2025)

2. Equifax: Non-Mortgage Delinquencies Reach Levels Not Seen Since 2009 (May 27, 2025)