Core Insights - Consumer credit performance shows early signs of stabilization in Q2 2025, particularly among mortgage holders, while younger Canadians without mortgages continue to face financial pressures [1][2] - Total consumer debt reached $2.58 trillion, a 3.1% year-over-year increase, with average non-mortgage debt per consumer at $22,147 [3][20] - The delinquency rate for non-mortgage holders is nearly double that of mortgage holders, indicating a growing financial divide [2][10] Consumer Debt and Delinquency Trends - Approximately 1.4 million Canadians missed a credit payment in Q2 2025, a decrease of 7,000 from the previous quarter but an increase of 118,000 from a year ago [1] - The average non-mortgage debt for consumers under 36 years old rose to $14,304, with a delinquency rate of 2.35%, reflecting a 19.7% year-over-year increase [10][20] - Delinquency rates in Ontario and Alberta are notably high, with Ontario's non-mortgage delinquency rate at 1.75% and Alberta's at 1.98% [5][6] Regional Analysis - Ontario has the highest delinquency levels for non-mortgage products, with significant increases in urban areas like Toronto and Hamilton [5] - Alberta's delinquency rates have also risen, influenced by economic challenges and a recent population surge [6] - Mortgage delinquency rates in Ontario and British Columbia remain elevated, with Ontario at 0.27% and British Columbia at 0.19% [7] Credit Demand and Spending Behavior - New credit trades decreased by 4.5% year-over-year, with only super-prime consumers seeing growth, indicating tighter lending criteria [12] - Average credit card spending per consumer was over $2,100 in June, a 0.4% decrease from June 2024, suggesting declining consumer spending on credit cards [3] - Auto loan originations increased by 2.9% year-over-year, primarily among low-risk consumers, with average loan amounts climbing to $35,586 [15][16] First-Time Homebuyer Activity - First-time homebuyer activity increased by 1.8% year-over-year, but major markets like Ontario and British Columbia saw lower numbers compared to 2024 [14] - The average loan amount for first-time homebuyers rose by 4% from Q2 2024, now close to $430K, intensifying affordability pressures [14]