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Rising Subprime Defaults Trigger Alarm for Canadian Economy

3/21/2026

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Summary

Story summary

Defaults among subprime lenders in Canada and the U.S. are rising, echoing 2008.
Goeasy, the Canadian alternative lender, reported higher loan losses, and its stock dropped 70%.
Major banks have increased loan loss provisions due to economic uncertainty, yet remain financially strong.
Experts say the issues may be isolated, but rising defaults could affect the broader economy if trends continue.

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Story summary

Defaults among subprime lenders in Canada and the U.S. are rising, echoing 2008.
Goeasy, the Canadian alternative lender, reported higher loan losses, and its stock dropped 70%.
Major banks have increased loan loss provisions due to economic uncertainty, yet remain financially strong.
Experts say the issues may be isolated, but rising defaults could affect the broader economy if trends continue.