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Statistics Canada's household debt service ratio — the share of disposable income going to debt principal and interest — sat at 14.40% in Q1 2025, down from a recent peak of 15.11% at the end of 2023.
of household disposable income went to debt payments in Q1 2025
— down from 15.11% at the end of 2023, the largest annual decline in the ratio since 2020.
Statistics Canada, National Balance Sheet and Financial Flow Accounts
The ratio fell for four straight quarters before ticking back up slightly in early 2025.
Total obligated payments of principal and interest on household credit market debt, as a share of household disposable income, seasonally adjusted. Source: Statistics Canada, National Balance Sheet and Financial Flow Accounts, Table 11-10-0065-01.
The ratio peaked at the end of 2023: the household debt service ratio hit 15.11% in Q4 2023, then fell for four straight quarters to 14.35% by the end of 2024 — the largest annual decline since 2020.
It's ticking back up, not still falling: the ratio edged up to 14.40% in Q1 2025 as household borrowing resumed even though disposable income kept pace, ending several quarters of relative improvement.
Debt is still growing faster than income: household credit market debt reached 173.9% of disposable income in Q1 2025 — $1.74 owed for every dollar earned — though still below the $1.79 recorded at the start of 2024.
Mortgage interest payments are creeping up again: mortgage interest payments rose 0.3% in Q1 2025, the first increase in three quarters, as renewal borrowers roll onto higher rates even while new borrowers get relief from lower posted rates.
| Quarter | Debt service ratio | Note |
|---|---|---|
| 2023 Q4 | 15.11% | Recent peak |
| 2024 Q3 | 14.55% | — |
| 2024 Q4 | 14.35% | Largest annual decline since 2020 |
| 2025 Q1 | 14.40% | Latest available |
Values as published in each quarter's Statistics Canada release; minor revisions can occur in subsequent releases. Source: Statistics Canada, National Balance Sheet and Financial Flow Accounts, Table 11-10-0065-01.
household credit market debt as a share of disposable income, Q1 2025 — $1.74 owed per dollar earned
StatCan
total household credit market debt outstanding, Q1 2025, with mortgages nearly 75% of the total
StatCan
household saving rate in Q1 2025, down for a second straight quarter
StatCan
total household net worth in Canada, Q1 2025, up 0.8% quarter-over-quarter
StatCan
A debt service ratio near 14.4% means the average Canadian household is already committing a significant slice of income to debt payments before a mortgage renewal even lands. That context is useful when a client pushes back on stress-test math or is deciding between a shorter amortization and payment breathing room — the national numbers back up why lenders and regulators stay cautious even as rates ease.
Last updated August 1, 2026. Each figure carries its source; projections are labelled. Page reviewed on every major source release. Information only — not advice.
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