Vancouver and Toronto have highest per capita consumer debt: Study

A recent study by savvynewcanadians.com called Canada’s Consumer Debt Surge 2023, revealed that Vancouver and Toronto are the cities with the highest per capita consumer debt.

The study provides a city-by-city analysis of the country’s surging consumer debt and is a data-driven analysis of the Canadian consumer debt landscape from the perspective of individuals and factors.

In terms of mortgage debt, it is the biggest driver of this growth, accounting for 74.3 per cent of total consumer debt. The study also noted that Canadians now carry an average of over C$65,000 in consumer debt.

According to the study, Vancouver and Toronto are the cities with the highest per capita consumer debt, at $360,683 and $187,350 respectively. Victoria has the highest per capita credit card debt, at $12,874.

The study noted that Canadians are increasingly using HELOCs to tap into their home equity. Auto loan and other line of credit usage has also decreased in recent years.

A total of 74 per cent of Canadian debt is from mortgages, noted the study, which highlights rising housing costs and affordability challenges. Diverse borrowing trends also indicate Canadians’ adaptability, however, solutions are required for a sustainable future.

The study noted that due to rising housing costs, Canadians rely more on mortgages, with mortgage debt rising 22.88 per cent since 2019. Auto loans and lines of credit are however declining.

In terms of cities with the highest consumer debt growth in the past five years, Windsor leads with the highest consumer debt growth in Canada at 22.47 per cent. Abbotsford and Brantford follow, with over 22 per cent and 21 per cent growth, respectively.

All top five cities, including Hamilton and Kitchener-Cambridge-Waterloo, have debt growth rates above 20 per cent.