More than 1 in 4 Canadians (27%) Say They Can't Pay All Their Bills at a Time When Millions Face Mortgage Rate Increases - TransUnion Study

As variable rate mortgages opened during the pandemic come under renewal, many Canadians are experiencing payment shock with an average 25% increase in mortgage repayments in last three years

• 44% of Canadians surveyed say they plan to cut discretionary spending.
• Among Canadians who said they don’t anticipate being able to pay all their bills and loans in full, 68% said it’s their credit card payments they won’t be able to make.
• While 46% of Canadians said they were targeted by fraud in the last three months, 37% reported taking no action in response to cybersecurity concerns.
• Over half (53%) of Gen X Canadians feel their financial situation is worse than planned, compared to only 30% of Gen Z.

TORONTO, July 17, 2025 (GLOBE NEWSWIRE) -- As Canadians continue to navigate economic uncertainty, many are adjusting their financial behaviours in response to affordability pressures and rising costs. According to TransUnion’s (NYSE: TRU) Q2 2025 Canada Consumer Pulse Study¹, 51% of Canadians surveyed had a recession in their top three household financial concerns over the next six months, and nearly half of all surveyed (44%) plan to reduce discretionary spending in the next three months. Canadians are also shifting to thriftier shopping options – 63% said they look for sales and discounts more frequently, 40% shop more frequently at more affordable retailers, and 31% use more coupons. These changes come at a time when over a quarter (27%) of Canadians say they won’t be able to pay all their current bills and loans in full and millions of Canadians’ mortgage payments face potential repayment increases.

Among Canadians who said they won’t be able to pay of their bills, 68% reported they won’t be able to pay off their total credit card payments. This could be due to these consumers prioritizing other credit payments, like mortgages. Despite the overall inflation rate returning to the Bank of Canada’s target, 96% of Canadians remain concerned about the current rate of inflation and the vast majority (83%) of all surveyed Canadian consumers had inflation in their top three household financial concerns over the next six months.

“Canadians are navigating a challenging financial landscape, with many adjusting their spending and prioritizing bill payments in response to rising costs and economic uncertainty,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “Our latest Consumer Pulse data shows that affordability concerns are top of mind, and many are taking proactive steps to stay financially resilient.”

Mortgage Renewal Stress Drives Payment Shock and Shifts in Financial Priorities
Additional research from TransUnion Canada shows that mortgage renewal stress is a key factor contributing to financial strain. As Canadians who purchased homes during the COVID-19 pandemic – when interest rates were at historic lows – begin renewing their mortgages, many are facing significantly higher payments, resulting in payment shock. This financial pressure is particularly evident among Gen X Canadians, with over half (53%) saying in the latest Consumer Pulse Study that their financial situation is worse than planned, the highest by far than any other generation surveyed.

According to The Bank of Canada’s Financial Stability Report – 2025, around 60% of Canadians’ mortgages are up for renewal in 2025 or 2026. TransUnion’s analysis shows that many of those who purchased homes during the COVID-19 pandemic – when interest rates were at historic lows – are now facing higher interest rates as they begin renewing their mortgages. The Consumer Pulse data suggests that this is leading to payment shock, a significant and often expected increase in debt payments.

TransUnion analysis shows that since March 2022, over two million consumers have experienced an increase in monthly mortgage payments, with the average monthly mortgage payment for these consumers increasing by 25% in the last three years from $1,527 in March 2022 to $1,908 in March 2025.

Consumers whose monthly mortgage payments have increased by 25% or more are also accumulating greater credit card debt – more than double the rate of those who did not have an increase in their mortgage payment. Overall, Canadians are prioritizing making mortgage payments over other credit obligations, which is leading to higher delinquencies.

Uncertainty and continued high interest rates have most likely negatively impacted mortgage demand. Nearly three-quarters (72%) of Canadians indicated in the latest Consumer Pulse Study that they are not considering purchasing a home in the next year. This may point to many consumers may be continuing to hold out for interest rate relief from the Bank of Canada.

“We’re at a critical moment where many Canadians who took on mortgages during the pandemic—when interest rates were at historic lows—are now facing rising payments and affordability pressures,” said Fabian. “With nearly CA$1.8 trillion in outstanding mortgage balances and 60% of mortgage holders up for renewal by 2026, millions could experience payment shock. Yet, despite these challenges, Canadians continue to demonstrate financial resilience—adapting their spending habits, prioritizing bill payments, and taking steps to help recession-proof their finances.”

Consumers Wary of Carrying Debt and Shift Shopping Habits as Economic Volatility Persists
Economic volatility has remained top of mind for many Canadians as over half (51%) in the Q2 2025 Consumer Pulse Study cite a recession as one of their top three financial concerns in the next six months. This uncertainty has continued to limit credit participation among Canadians of all generations, with nearly a third (30%) of all surveyed saying they are uncomfortable with owning credit products.

In effort to balance their household budgets and remain financially resilient, 74% of Canadians who said we’re currently in a recession or will be in one by the end of Q2 reported they plan on reducing their spending in order to prepare for one. Among all Canadians surveyed, many said they adjusted their shopping habits in the last three months, including:

• Looking more frequently for sales and discounts (63%)
• Buying more generic or store brands (41%)
• Shopping more frequently at affordable retailers (40%)
• Shopping at retailers with loyalty programs more often (33%)
• Using more coupons (31%)
• Taking advantage of credit card offers for special discounts more often (16%)

To curb spending, Canadians are making various cutbacks, such as digital subscriptions, with 25% reporting they cancelled a subscription or membership in the past three months.

Fraud Awareness Remains High, but Nearly 4 in 10 Canadians are Taking No Action
Canadians remain aware of fraud risks and nearly half (46%) of those TransUnion surveyed reported being targeted by email, online, phone call or text message fraud attempts in the past three months. Despite these risks, the Consumer Pulse data indicates that over a third (37%) of Canadians said they took no action in the last 60 days in response to cybersecurity concerns. Of these individuals, 44% said they did nothing because they were unsure of what actions to take.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy
E-mail: [email protected]
Telephone: +1 647-772-0969

¹ TransUnion’s Consumer Pulse Survey of 982 adults was conducted May 5–18, 2025