How Much Debt Do Canadians Have by Age?

Debt is a familiar reality for many Canadians. After a brief dip during the pandemic, the Canadian household debt-to-income ratio climbed to 184.5% in the first quarter of 2023, meaning households owed nearly $1.85 for every dollar of disposable income. A 2019 RBC poll showed that households led by people aged 35 to 44 who carried debt had a combined debt-to-disposable-income ratio of about 250%, while indebted millennials under 35 carried debt equal to roughly 165% of their disposable income.

Most of this growth in household debt has been driven by rising mortgage balances as demand pushed home prices to record highs across the country. But a high national average doesn’t mean every Canadian is overloaded with debt: the composition and burden of debt vary greatly by age, household type and region.

What is the average debt for Canadians?

To understand typical balances, TransUnion’s Q1 2023 Credit Industry Insights reports offer a useful snapshot of average consumer balances among people who carry debt in different categories. The averages below reflect only those consumers who owe money in each product type, not the entire population.

Debt type	Average owed
Credit cards	$3,909
Installment loans	$20,845
Auto loans	$26,494
Lines of credit	$34,328
Mortgages	$349,178

These figures describe the average balances for consumers who carry debt in each category. For example, many Canadians pay their credit card balances in full every month; among those who do carry a credit card balance, the average is roughly $3,909. Comparing the average mortgage balance to the benchmark price of a typical Canadian home (about $717,000) suggests that the average mortgage balance represents roughly half the value of a typical home, illustrating how mortgage debt is the dominant component of household borrowing.

How much debt is normal for your age?

Debt patterns change with age. Younger Canadians are more likely to carry student loans and high-interest consumer debt, while mortgage balances tend to peak in the 30s and 40s before declining as households pay down principal and save for retirement. The following sections summarize common debt patterns by age group, drawing on generational household debt findings and practical experience working with clients.

Typical debt for 18- to 29-year-old Canadians

People in their late teens and 20s often carry student loans, credit card debt and, increasingly, first-time mortgages. Survey data show that just over a quarter of respondents in this age range had a mortgage, with the average mortgage balance among them near $475,318. Among those who carried credit card debt, the average card balance was about $4,500. Young borrowers who used a home equity line of credit (HELOC) had average balances just above $55,000.

Typical debt for 30- to 39-year-old Canadians

Many in their 30s hold substantial mortgage debt from recent home purchases and also carry lines of credit and auto loans. Survey respondents in this group reported a combined debt load—mortgages, HELOCs, credit cards and student loans—averaging around $644,000. Mortgages were the biggest single item, with average mortgage balances edging above $500,000 among those who had one. Credit card balances for those who carried them averaged roughly $6,200.

Typical debt for 40- to 49-year-old Canadians

Households in their 40s often carry large mortgages and HELOC balances, but they also tend to benefit from higher incomes and, on average, lower child-care costs than when their kids were younger. Respondents in this age group reported the highest overall debt levels, with total debts close to $648,000. HELOC balances were notable, with average drawn amounts exceeding $102,000 among those who used them.

Typical debt for 50- to 59-year-old Canadians

Clients in their 50s generally focus on accelerating debt repayment and increasing retirement savings. The survey showed that 50- to 59-year-olds who still carried a mortgage had an average mortgage balance near $367,000, and total household debt among respondents in this group averaged about $566,000.

Typical debt for 60- to 69-year-old Canadians

While the ideal in retirement is to be mortgage-free, it’s increasingly common for older adults to still carry mortgage balances. Among respondents in their 60s who had mortgages, the average balance was about $256,000, and total debt for the group averaged around $436,000.

Typical debt for 70+-year-old Canadians

Even among those aged 70 and older, a share of Canadians still carry mortgage or HELOC debt. In the survey, roughly 11% of respondents aged 70+ carried a mortgage, with an average balance near $217,500. About 15% had a HELOC, with average balances exceeding $124,000. For many older homeowners, accessing home equity—through lines of credit or other lending—helps them remain in their homes and maintain their lifestyle in retirement.

How to get out of debt

Reducing debt is a top priority for many Canadians. A 2023 BDO survey found that more than half of respondents planned to cut non-essential spending to pay down debt; others said they would reduce essential spending or work more, while a portion felt overwhelmed and unsure what to do. A measured, practical approach is usually the most effective.

Start by prioritizing the highest-interest balances, such as credit card debt and other costly consumer loans. Paying these off first—the debt avalanche method—delivers the biggest interest savings. Treat high-rate debt as urgent: reduce or eliminate it as quickly as possible.

Once high-interest balances are under control, focus on mid- and low-interest debts such as lines of credit and mortgages. HELOCs are especially easy to underpay because interest-only options can trap borrowers in a long-term balance; aim to eliminate HELOC debt within a reasonable timeframe, such as three to five years. For mortgages, it’s often reasonable to balance mortgage repayment with saving for retirement; many households plan their mortgage amortization to align with their intended retirement date to preserve options and ensure a debt-free retirement if possible.

So, now, what about your own debt?

Debt is common in Canada, especially in higher-cost regions, and patterns change over a lifetime. You might carry higher debt-to-income ratios in your 20s and 30s, see balances stabilise in your 40s and 50s, and aim to be largely debt-free by your 60s and beyond.

The practical rules of thumb are straightforward: avoid carrying revolving credit card debt by paying balances in full each month, pay down lines of credit on a realistic schedule, and align mortgage payoff timing with your retirement goals. Those steps help ensure you can retire comfortably without burdensome debt.