Canadians Turn to Family and Credit as Costs Rise

Two recent surveys highlight the mounting financial pressure on Canadian households as prices rise and wages lag. One study from Mortgage Professionals Canada (MPC) finds most recent home buyers relied on outside help to get into the market, while a separate poll by licensed insolvency trustee Harris & Partners shows many Canadians struggle to cover everyday essentials.

MPC’s State of the Housing Market survey reports that 70% of Canadians who bought a home in the past two years said they would not have been able to buy without financial assistance; among all home buyers the share is 58%. Much of that help is coming from family: a 2024 CIBC analysis finds intergenerational transfers are increasingly common, with roughly 31% of first-time buyers receiving a gift from parents. The average gift amount has risen substantially, now exceeding $100,000 compared with under $60,000 in 2015.

The new reality of home ownership: financial help and rising payments

Homeowners also face pressure from rising borrowing costs. MPC notes growing concern around mortgage renewals: more than one in five Canadians report “high anxiety” about renewing at higher interest rates. Royal LePage estimates that of the roughly 1.2 million mortgages due for renewal this year, 57% of owners expect monthly payments to increase—and among those, 81% say higher payments will force cuts to household spending on discretionary items such as dining out and entertainment.

Canadians are turning to credit to get by

Housing costs are only part of a wider affordability squeeze. Harris & Partners surveyed over 1,700 Canadians and found that more than 57% say their current income no longer covers day-to-day essentials such as groceries, rent and utility bills. To bridge those shortfalls, many households are relying on credit.

The 2024 Canadian Consumer Credit Card Report shows 69% of adults use credit cards to pay for basic purchases, and about one-third of those cardholders do not pay the full balance each month. TransUnion’s Q1 2025 report backs up that trend: average credit card debt per Canadian is now about $4,415, up roughly 3.24% year over year. TransUnion also reports rising balances on other credit products, with installment loans and mortgage balances both increasing by more than 4% compared with the previous year.

How to regain control amid rising costs

With the cost of living outpacing income growth, households need practical steps to protect their finances. Start by reviewing mortgage options—shopping lenders, negotiating terms, or considering a switch may reduce long-term costs. In some cases, breaking a mortgage and moving to a lower rate could make sense, but always compare penalties and savings carefully.

For unsecured debt, look into balance-transfer credit cards, lower-rate consolidation loans, or targeted repayment strategies that prioritize high-interest balances. These approaches can reduce interest charges and simplify monthly payments. Use calculators and compare offers before making changes, and consider professional advice if debt feels overwhelming.

Also confirm you’re receiving any government supports, tax credits or deductions you qualify for. Check eligibility for new programs such as the Canada Disability Benefit and the Canadian Dental Care Plan if they apply to your situation—every eligible benefit can ease monthly strain.

Read more about affordability:

• Inflation climbs to 1.9% in June, led by surging vehicle costs
• Rents easing across most major markets but many tenants not feeling relief: CMHC
• Missed credit payments grew by 4% in the first quarter of 2025
• The best low-interest credit cards in Canada