Story perspectives

Canada’s Debt Soars: Gen Z and Newcomers Drive Crisis

6/10/2025

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Summary

Story summary

Canada’s consumer debt hit a record $2.5 trillion in Q1 2025, largely influenced by Gen Z, newcomers, and subprime borrowers.
Gen Z's credit balances surged by 30.6% year-over-year, while newcomers contributed $2.6 billion in new credit.
Subprime borrowers experience increased delinquency rates, especially in Ontario and Alberta, amid rising costs.
Mortgage professionals advocate for proactive strategies to manage debt and enhance financial well-being.

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Story summary

Canada’s consumer debt hit a record $2.5 trillion in Q1 2025, largely influenced by Gen Z, newcomers, and subprime borrowers.
Gen Z's credit balances surged by 30.6% year-over-year, while newcomers contributed $2.6 billion in new credit.
Subprime borrowers experience increased delinquency rates, especially in Ontario and Alberta, amid rising costs.
Mortgage professionals advocate for proactive strategies to manage debt and enhance financial well-being.