Just The Facts: Canadians Are Running Out of Money After the Liberals’ Cost of Living Crisis
Ottawa, ON – A new report from the Office of the Superintendent of Bankruptcy shows that in the first three months of 2026, Canadians seeking help under the Bankruptcy and Insolvency Act reached levels not seen since 2009, when the world was still dealing with the Great Recession.
Compared to the same period in 2025, consumer insolvencies rose 8.5%. And, according to the Canada Mortgage and Housing Corporation, mortgage delinquencies reached the highest level since 2021.
All this comes as TransUnion Canada reports Canadians took on more mortgage debt last year, with all household debt in Canada totalling $2.6 trillion.
On average Canadians owe $1.77 in debt for every $1.00 they earn. However, in testimony to the Finance Committee, the CEO of Equifax Canada said that for the bottom 80% of earners, the debt to income ratio rises to over 200% and for the bottom 20% of earners it is almost 430%.
Canadians have used their savings, refinanced their debt and borrowed more to be able to afford their rent, mortgage and basic necessities. No wonder MNP Canada reports more than 4 in 10 Canadians are $200 or less away from insolvency each month.
After Mark Carney added another $54 billion of spending in his credit card budget, the interest on Liberal debt now costs the average Canadian household $3,400 in taxes. After a decade of Liberals it is not surprising Canada has the highest food inflation, the highest housing costs and the highest household debt in the G7.
Rising unemployment and cost of living will only drive more Canadians to the breaking point. Only Conservatives have a plan to get government out of the way to unleash the economy and restore powerful paycheques so Canadians can break out of this Liberal debt cycle.