![\"house-0526-ph\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/05\/b74bbcc28a376b13d5a01a12cabd4fff.jpeg\")
Homeowner insolvency volumes up more than 11 per cent. (Credit: Getty Images) Homeowner insolvency volumes up more than 11 per cent. (Credit: Getty Images) <\/p>\n
The number of Canadians filing for insolvency<\/a> has hit levels not seen since the Great Recession<\/a>, signalling that many consumers have hit a \u201cfinancial inflection point,\u201d says a new report from Equifax Canada.<\/p>\n Insolvency volumes jumped 18.8 per cent in the first quarter of 2026 from the year before to the highest since 2009, said the report, with homeowner insolvency volumes up more than 11 per cent. The number of Canadians without a mortgage filing for insolvency was still higher, but their growth rate was lower at 4.7 per cent.<\/p>\n The severity of insolvencies has also worsened. The average non-mortgage debt<\/a> in filings rose to $43,300, up from $40,200 two years ago. For Canadians with a mortgage<\/a> the debt rose even higher, with the average non-mortgage debt hitting $82,400, up by 19 per cent.<\/p>\n \u201cWhile the mortgage renewal wave is expected to slow towards the end of 2026, the transition to significantly higher interest rates continues to fuel financial impact and payment pressure,\u201d said Rebecca Oakes, vice president of advanced analytics at Equifax Canada.<\/p>\n \u201cConsequently, ongoing monitoring of debts remains essential for Canadians.\u201d<\/p>\n \u201cSevere financial strain\u201d is already showing up in Canada\u2019s higher priced housing markets. Mortgage delinquencies in Ontario soared 52 per cent in the quarter and 36 per cent in British Columbia.<\/p>\n This latest data support other surveys that have found that financial pressures are building. According to the Harris & Partners Financial Resilience Index, many Canadians have reached their breaking point.<\/p>\n Almost 60 per cent in that survey said their income didn\u2019t cover basic expenses including rent, food and bills and 83 per cent said they have had to cut back on essentials such as heating and groceries.<\/p>\n \u201cWe\u2019re seeing more people forced to make difficult choices simply to stay on top of monthly expenses,\u201d says insolvency trustee and CEO Joshua Harris. \u201cWhen households begin relying on savings or credit to manage basic costs, it can quickly lead to long-term financial strain.\u201c<\/p>\n The good news is that Canadians appear to be trying to keep debt in check.<\/p>\n Total consumer debt rose 3.8 per cent in $2.66 trillion in the first quarter, but non-mortgage debt dropped for first time in several quarters, said Equifax.<\/p>\n \u201cThe reduction in holiday spending at the close of 2025 translated into lower seasonal balance increases on credit cards,\u201d said Oakes.<\/p>\n \u201cThis discipline enabled many Canadians to pay down balances during the first quarter, representing a critical shift in how consumers are navigating the current macroeconomic climate.\u201d<\/p>\n Sign up here<\/a> to get Posthaste delivered straight to your inbox.<\/p>\n \u00a0<\/p>\n Small business confidence in Canada plunged this month. The CFIB Business Barometer<\/a> dropped more than 11 points to fall below the 50-point threshold, with every province and sector posting a decline.<\/p>\n Rising fuel costs are the top pressure point, cited by 72 per cent of businesses, said the Canadian Federation of Independent Business<\/a>, and weak consumer demand is listed as the biggest restraint on business expansion.<\/p>\n For the first time this year a higher share of employers are planning to lay off staff than to hire.<\/p>\n \u201cMany small firms are stuck in a grind. Demand is weak, costs \u2014 especially fuel \u2014 are high and conditions don\u2019t show signs of improving. This environment is not conducive to strong orders or investment,\u201d said Andreea Bourgeois, CFIB director of economics.<\/p>\n \u00a0<\/p>\n Keeping debt a secret is common, but it can be costly. The longer debt is left without a plan, the more difficult and expensive it becomes to resolve. Credit counsellor Mary Castillo explains how hidden debt could be costing you more than you think and offers tips on recognizing and resolving the problem. Read more\u00a0<\/a><\/p>\n Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on\u00a0 one of the country\u2019s most important sectors. Sign up here.<\/a><\/p>\n Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com<\/a> with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/p>\n McLister on mortgages <\/p>\n Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s Financial Post column <\/a>can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his mortgage rate page<\/a> for Canada\u2019s lowest national mortgage rates, updated daily.<\/p>\n Financial Post on YouTube <\/p>\n Visit the Financial Post\u2019s YouTube channel<\/a> for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more.<\/p>\n Today\u2019s Posthaste was written by Pamela Heaven<\/a> with additional reporting from Financial Post staff and Bloomberg.<\/p>\n Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com<\/a>.<\/p>\n Bookmark our website and support our journalism: Don\u2019t miss the business news you need to know \u2014 add financialpost.com<\/a> to your bookmarks and sign up for our newsletters here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Homeowner insolvency volumes up more than 11 per cent. (Credit: Getty Images) The number of Canadians filing for…\n","protected":false},"author":2,"featured_media":694966,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,4191,5427,46,148628,50111,200701,253626,253625,17757,183313],"class_list":["post-694965","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-canadians","tag-debt","tag-economy","tag-equifax-canada","tag-financial-strain","tag-inflection-point","tag-insolvency","tag-joshua-harris","tag-mortgage-rates","tag-mortgage-renewal"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/694965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=694965"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/694965\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/694966"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=694965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=694965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=694965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a>
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