For mortgage brokers nationwide, the report highlights the dependence on Canadians on unsecured credit, especially among young borrowers.
Canada’s total consumer debt hit $25 trillion in the first quarter, with growth fueling 30.6% of outstanding credit balances for Gen Z consumers, according to Transunion. Meanwhile, the new credit balance for new Canadian immigrants is US$2.6 billion, an increase of 6.3% per year.
“As Generation Z consumers actively participate in the share of credit, lending faces key opportunities to shape lifelong financial relationships,” said Matt Fabian, head of financial services research and consulting at Transunion Canada, Canada.
Mortgage preparations decline, unsecured debt climbs
Mortgage professionals say the data reflects what they have witnessed.
Valko Financial founder and CVO Tracy Valko said she has seen a trend in non-collateralized debt, especially among young Canadians and new immigrants.
She told Canadian Mortgage Trends. “Between student loans, credit card balances and increased living expenses, it is not uncommon for high utilization and limited savings.”
Similarly, mortgage agent and co-founder David Van Noppen said financial education is an increasingly important missing piece.
“Newcomers are taking on high-interest payday loan debt, and Gen Z sees debt as a way of life, so they don’t usually understand the cost,” he said. “I spent a lot of time showing the cost of interest in my conversation.”
Credit card balances grew by 2.8% and credit card balances increased by 3.2% as new cards grew by growth and higher consumer balances overall, according to a report from Transunion.
Among the lower-than-players and sub-consumers, the pressure is most acute, not only taking on more unsecured debts, but also paying back the payments faster.
Transunion noted that in the first 12 months of opening a new credit card, secondary consumers are now twice as likely to suffer crimes in the first 12 months of opening a new credit card, compared with the figures since 2020.
“These findings further demonstrate weaknesses borrowers’ increased macroeconomic factors such as higher interest rates and increased cost of living,” Transunion wrote.
Ontario and Alberta lead the country’s rising crime
Geographically, the report illustrates which regions face the greatest economic pressure.
Alberta has the highest non-mortgage crime rate in the country at 2.35%, up 16 basis points from the same period last year. Ontario saw the highest growth in serious violations, up 17 basis points to 1.98%.
“Regional pressure is a major part of the conversation right now,” Valko said. “In Ontario, especially in areas like Waterloo, for example, we see a combination of technical layoffs, rising rents and general uncertainty about job security.”
Transunion also noted the ongoing uncertainty around the tariffs, warning that potential trade actions could worsen the rate of violations in regions related to vulnerable industries.
Why proactive approaches are important for brokers and borrowers
Some brokers say these worrying credit trends are driving them to consult their clients.
“My approach is to be ahead of the problem before it becomes a crisis,” Valko said. “The sooner the client comes to us, the more solutions we can explore together. We also talk about cash flow strategies, such as setting up structured payments, suspending certain fees or setting up small contingency funds, even in moderation.”
Broker and credit consultant Ross Taylor responded to the need for more discipline on the budget.
“Most of the debt I see is the result of overspending rather than living within means; the general pressure to treat credit like supplementary income, and increase the cost of living,” he said. “People are often reluctant to eliminate the habit of poverty.”
As these financial challenges become more common, brokers are increasingly adopting an active approach, especially as the profile of average first-time buyers becomes more complex. Now, many people encourage longer schedules to put customers under high interest debt burdens.
“I encourage customers to go upfront with lenders,” Valko said. “Most lenders are willing to work with borrowers who communicate early on – this means restructuring payments or finding temporary relief solutions. But if customers wait too long and fall behind, those doors will close soon.”
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Consumer Credit Consumer Credit Insights Credit Z Matt Fabian New Immigrant Ross Taylor Steven Brennan Tracy Tracy Valko Transunion Transunion Canada
Last modified: June 8, 2025
