Data shows that in 2024, consumer insolvency filings in Canada reached 137,300, marking an 11.4% increase from 2023. This is the second-highest annual insolvency count in history, surpassed only by the 2009 recession. Moreover, the growth rate over the past two years is second only to the surge during the Global Financial Crisis.

Despite official economic data revisions suggesting a stronger-than-expected economy, the sharp rise in consumer insolvencies tells a different story. Not only has Canada recorded its second-highest insolvency level, but the growth rate is also comparable to the financial crisis era. If consumers are struggling in a supposedly “strong” economy, a future recession could bring even greater financial distress. This trend also signals rising risks for mortgage defaults.

AiF Insight: No investment, no wealth.