Insolvencies are “stabilizing” overall after shooting up from the pandemic lows, but that is masking a deteriorating situation in some provinces where consumer debt is especially high, says a new report.

“Insolvencies have been relatively stable since July 2025,” Charles St-Arnaud, chief economist at Edmonton-based Servus Credit Union, said. “But this situation hides some deterioration … especially Ontario, B.C. and Manitoba.”

Insolvencies, including proposals to renegotiate terms and bankruptcies, are up 36.7 per cent in British Columbia , 23.4 per cent in Manitoba and 19.8 per cent in Ontario since 2019, with those regions recording among the highest levels of consumer debt, according to Servus Credit Union.

St-Arnaud measured the change from 2019 because the economy was “in a more normal state on the household side,” compared with the pandemic years when insolvencies cratered due to the courts being closed, among other reasons.

High interest rates and household debt and stretched purchasing power have pressured households’ finances over recent years, he said, pointing to an insolvency rate per 1,000 people in B.C. that has significantly risen above the level recorded in 2019.

In Ontario, that measure now registers slightly ahead of that from seven years ago and the rate in Manitoba is also higher in the same timeframe.

In the case of B.C., St-Arnaud said much of the financial strain is due to higher interest rates, estimating that a one percentage point increase on a $1-million home adds up to an additional $10,000 in interest payments a year.

“That’s a big sticker shock on mortgage payments,” he said. “I’m guessing higher interest rates are causing more pressure on households there.”

Financial relief, however, remains elusive for many Canadians, with higher energy prices ratcheting up the pressure and potentially causing broader inflation.

The national household-debt-to-income ratio was 173.3 in the final quarter of 2025, meaning $1.73 was owed for every dollar of income. In B.C., that ratio at the end of 2025 was 190, while it was 205.9 in Ontario and 138 in Manitoba.

Budgets are under strain, with higher energy prices ratcheting up the pressure, while at the same time risking causing broader inflation.

St-Arnaud said the job market poses the main risk for insolvencies rising. So far, Canada hasn’t recorded elevated levels of job losses despite the imposition of United States tariffs, but he said insolvencies would likely shoot up if employers turn to layoffs.

He also said insolvencies were destined to rise overall due to the dramatic increase in population since the pandemic, though immigration has slowed in the past few quarters.

However, total insolvencies nationally remain well below levels recorded during the great financial crisis on a per 1,000-person basis.

Month over month, insolvencies in Canada were down 5.7 per cent in May from April, when they increased from March; year over year, they were up 1.1 per cent in May compared with 7.4 per cent in April.

Proposals to renegotiate terms made up 77 per cent of the insolvencies, with bankruptcies accounting for the rest, while households, not businesses, represent the bulk of the insolvency data.

“While the data has been quite volatile over the past year, even on a seasonally adjusted basis, insolvencies have been stabilizing,” St-Arnaud said.

  • Posthaste: Canada’s biggest city plummeted in this North American ranking — in just one year
  • Posthaste: Canadians getting caught in ‘pre-spent paycheque’ trap as cost of living weighs

Sign up here to get Posthaste delivered straight to your inbox.


The Canadian dollar rose 0.6 per cent on Tuesday to take it above 71 cents U.S. for the first time in a month as the greenback slumped on cooler-than-expected inflation in the United States.

U.S. inflation for June came in at 3.5 per cent year over year, beating economists’ expectations of 3.8 per cent and down from the 4.2 per cent increase recorded in May. The core measure was flat month over month versus calls for it to rise to 0.2 per cent.

“For the Canadian dollar, developments should bring some relief from the recent downward pressure against the U.S. dollar,” Shaun Osborne, chief currency strategist at Scotiabank, said in a note. — Gigi Suhanic, Financial Post

Read the full story here.

  • Bank of Canada releases its interest rate decision at 9:45 a.m. ET
  • Today’s Data: Canada existing homes sales, manufacturing sales, wholesale sales excluding petroleum, U.S. Federal Reserve releases Beige Book, U.S. producer prices indexes for food, energy and final demand
  • Earnings: Blue Ant Media Corp., Cannara Biotech Inc., Cogeco Communications Inc.

  • Canadian home sales rise for third consecutive month as new listings fall: CREA
  • Housing projects are piling up across Canada as the pipes underneath can’t keep up
  • Garry Marr: Your new government neighbour and how it might affect the value of your condo

Many Canadians assume that the country’s wealthiest pay little in the way of taxes due to loopholes and rate preferences. In other words, they aren’t ponying up their fair share. That couldn’t be further from the truth, according to a study that says Canada’s top 20 per cent of families by income pay 65.3 per cent of all personal income taxes. But Kim Moody argues that’s only the tip of the tax iceberg for the richest. Keep reading here to find out more.

Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here