TORONTO - The broad picture of household finances indicates that Canadians are generally managing through the upheavals of tariffs, a soft job market, inflation and other headwinds, but looking deeper shows pockets of severe credit challenges.
The recent difficulties at Goeasy Ltd. give a hint of those troubles, after the subprime lender reported hundreds of millions in losses last month after it wrote down $178 million in loans and saw its shares plummet.
The troubles happened despite credit rating agency TransUnion reporting overall delinquencies were unchanged in the last quarter of 2025 from a year earlier.
It's part of a broader trend of many people, especially homeowners, managing well, as financial strain worsens for those who were already struggling.
鈥淭hose high-level numbers can mask a little bit what's actually happening,鈥 said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada.
鈥淲e talk about that K-shaped recovery, it鈥檚 kind of like that divergence. The average looks OK, but actually we've got more extremes going in different directions.鈥
Elevated unemployment, especially among youth, has created pressure, but many people are falling behind just from the accumulated costs of living, said Bruce Sellery, chief executive of Credit Canada.
鈥淭he paradox is there are many people who are just fine, and the world is just fine, and many people who are in an exceedingly difficult situation.鈥
The non-profit credit counselling service saw requests climb 31 per cent last year, including from many who haven鈥檛 necessarily had an abrupt financial challenge like job loss, health issue or divorce, but instead just can鈥檛 manage rising costs.
鈥淲e, historically, skewed to people with acute need,鈥 said Sellery.
鈥淲hat we're seeing much more now is just the culmination of the cost of living increases.鈥
The strain can be seen in consumer insolvencies, which hit 140,457 in 2025 鈥 the highest since 2009 鈥 averaging about 385 per day, according to the Canadian Association of Insolvency and Restructuring Professionals.
It can also be seen in rising non-mortgage delinquencies, where credit cards, instalment and auto loans are at the highest in more than a decade.
Bank of Canada data shows that 2.64 per cent of instalment loans were at least 90 days in arrears as of the fourth quarter of 2025, double where it was four years earlier.
Credit card loans in arrears hit 0.78 per cent in the fourth quarter, up from 0.45 per cent in 2021, while auto loans hit 0.67 per cent, up from 0.39 per cent four years earlier.
It can also be seen in Goeasy鈥檚 updated financials. The firm had expected that about 8.75 per cent of loans wouldn鈥檛 be repaid last year, a much higher level than banks, but reflective of riskier subprime borrowers.
Instead though, the number jumped to 12.9 per cent for 2025, including a 24 per cent surge in the fourth quarter, with expectations that it will also come in at 18 per cent for the first quarter of this year.
The worsening payback rates come as more people rely on personal loans to manage through higher costs of living, according to TransUnion.
But the increase in borrowers unable to repay loans is also leading lenders to pull back.
TransUnion noted a drop in new issuances of credit cards, auto loans and especially instalment loans, with approvals skewing to higher-quality consumers.
Equifax has also noted a pullback from lenders, Oakes said.
鈥淚t doesn't mean that there isn't demand for that necessarily coming from consumers, it could just be that lenders perhaps are tightening.鈥
In promising a turnaround to investors, Goeasy chief executive Patrick Ens said the firm would be doing just that.
鈥淲e've reduced lender originations. We've significantly tightened credit standards,鈥 said Ens on their quarterly analyst call.
鈥淲e will be strengthening our enterprise risk management with enhanced risk models, credit discipline and collections resources.鈥
Even borrowers outside of the subprime space are feeling the pressure.
The picture varies across the country, with rising insolvencies in places feeling the higher renewal rates of mortgages, said Randall Bartlett, deputy chief economist at Desjardins.
鈥淲here you're really seeing the strain is in those more unaffordable markets, like Ontario and B.C., and households there really feeling the squeeze of higher interest rates on their household budgets.鈥
Those feeling the squeeze of higher rates at renewal is helping lead to the divergence of Canadian financial fortunes, he said.
鈥淭here's declining savings, increasing credit to cover essentials, and so it's really becoming, a very sort of polarized story in terms of how things are doing in Canada.鈥
The Bank of Canada鈥檚 interest rate cuts have helped pull back overall debt-to-income ratios, but such rate moves don鈥檛 really help sub-prime borrowers relying on credit cards or other extra high-interest products.
鈥淧eople who aren't a homeowner, or who don't have a mortgage, their missed payment rates are rising much faster than those that do,鈥 said Oakes.
鈥淪o that gap is widening."
This report by 国产诱惑福利 was first published April 12, 2026.
