Canada’s middle class is feeling acute financial pressure as the K-shape economy deepens. Equifax Canada reports non-mortgage debt rose 4.5% year-over-year in Q4 2025-and surged 6.1% among consumers with credit scores of 751-880.
Missed non-mortgage payments jumped 5.4% year-over-year, reaching 1.73% of households. Mortgage debt hit $1.95 trillion-up 2.6%-driven by renewals at sharply higher rates.
Rebecca Oakes, Equifax Canada VP of analytics, notes the paradox: strong credit scores enabled larger mortgages, but now deliver severe payment shock amid soaring cost-of-living pressures-especially in Vancouver and Toronto.
The Bank of Canada held rates steady in March 2026 but cited Iran-related inflation risks, raising fears of future hikes.
