Canadian mortgage borrowing slowed to its weakest tempo in two years within the first quarter, whilst households continued to tackle extra debt total.
Complete family credit score market borrowing rose to a seasonally adjusted $35.5 billion in Q1 2026, up $1.0 billion from the earlier quarter, in response to Statistics Canada’s newest nationwide steadiness sheet and monetary move accounts. The rise, nonetheless, was pushed by non-mortgage borrowing, together with client credit score, whereas mortgage demand softened.
“Declining demand for mortgage debt was greater than offset by development in non-mortgage debt (together with client credit score),” the company stated.
Internet originations of mortgage loans fell to $22.6 billion within the quarter, marking the slowest tempo of mortgage borrowing for the reason that first quarter of 2024. It was additionally the most important quarterly decline in mortgage originations for the reason that fourth quarter of 2023.
Mortgage borrowing cooled alongside a slower begin to the yr for housing exercise, with Statistics Canada noting that family liabilities rose simply 0.4% within the quarter, reflecting the standard first-quarter sample of weaker development tied to “decrease resale exercise and new building.”
Regardless of the slower tempo of exercise, the worth of family residential actual property rose 1.3% to $8.47 trillion in Q1. StatCan stated the MLS Dwelling Worth Index rose 0.7% over the primary three months of the yr, whilst seasonally adjusted resales fell 8.4%.
Rental markets continued to point out pressure in main centres, with new condominium condominium costs down 5.9% yr over yr in Toronto and a couple of.9% in Vancouver, in response to StatCan’s New Condominium Condominium Worth Index. The company additionally famous that the Financial institution of Canada’s newest Monetary Stability Report warned that stress in apartment markets, notably in Toronto and Vancouver, has created challenges for some house owners and traders.
With households persevering with to borrow sooner than incomes are rising, whole family credit score market debt reached $3.25 trillion within the first quarter, pushing the debt-to-disposable-income ratio up for a sixth straight quarter to 179.6%.
“In different phrases, there was roughly $1.80 in credit score market debt for each greenback of family disposable earnings,” Statistics Canada stated.
Debt servicing prices edged increased after two consecutive quarterly declines. The family debt service ratio rose to 14.75% from 14.68% within the fourth quarter, as whole debt funds elevated 1.1% and outpaced earnings development. Mortgage curiosity funds rose 0.9% within the quarter, reversing declines recorded within the second half of 2025.
BMO senior economist Shelly Kaushik famous that whereas the debt-to-income ratio has been rising for the reason that finish of 2024, it stays roughly 10 share factors under the all-time excessive reached in 2022.
“The sluggish grind increased in debt ranges bears watching because the Financial institution of Canada debates the path of financial coverage, however for now, we’re not seeing warning indicators of serious vulnerability,” Kaushik wrote.
She added that the family debt service ratio is more likely to face “some upside stress over the subsequent yr amid mortgage charge resets,” however stated it has to this point carried out higher than anticipated attributable to previous charge cuts and earnings development.
Family web price rose 1.3% to only over $18.6 trillion, supported by good points in monetary belongings and residential actual property, whereas the family saving charge fell to three.5%, its lowest degree for the reason that first quarter of 2024.
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Dashboard financial indicators mortgage credit score mortgage market nationwide account steadiness sheet nationwide steadiness sheet and monetary move accounts Shelly Kaushik statcan statistics canada
Final modified: June 12, 2026
