Key Findings on Homeowner Indebtedness (2025)

Manulife 2025 report on indebtedness of homeowners.

Recent data from Manulife Bank and related industry reports in 2025 highlight a growing financial strain on Canadian homeowners, characterized by rising debt levels and a lack of liquidity for essential expenses. 

Key Findings on Homeowner Indebtedness (2025)

• Struggling to Pay Bills: 37% of homeowners reported having insufficient funds in their bank accounts to cover expenses at least once in the past year. Nearly 1 in 4 (approx. 23%–24%) experienced this shortage, with 4% stating it is a regular occurrence.

• Rising Average Debt: The average mortgage debt for Canadian households rose to $181,000 in late 2025, up from $175,000 the previous fall. Other reports noted historical increases in average mortgage sizes to over $201,000.

• Inability to Manage Rate Increases: Approximately 72% of mortgage holders indicated they would be unable to manage a mere 10% increase in their monthly payments.

• Financial Sentiment: 38% of homeowners believe they will face more difficulty becoming debt-free than their parents did.

• Retirement Anxiety: Fewer than two-thirds of homeowners expect to be mortgage-free by retirement, and 60% believe they will not have saved enough for their post-work years. 

  
  

Broader Housing Market Trends

• Housing Affordability Crisis: 75% of non-homeowners who want to buy a home report they cannot afford to, while 87% of Canadians overall believe there is an affordable housing crisis.

• Mortgage Renewal Cliff: Many borrowers who took out mortgages in 2020–2021 are facing significantly higher payments upon renewal in 2025–2026, with some scenarios projecting increases of up to 45%.

• Delinquency Variations: While national mortgage delinquency rates remained low (0.2% as of late 2024), regions like Ontario saw a 44% year-over-year increase in delinquencies in early 2025.