• Growth in new mortgages slowed significantly as affordability pressures persisted
• More Canadians fell seriously behind on payments year-over-year, with stress concentrated in Alberta, Saskatchewan and Ontario
• Consumer insolvency rates rose, driven primarily by non-mortgage holders

Canadian consumer debt hit a record $2.64 trillion in the second quarter of 2026 as debt levels grew faster than the number of Canadians using credit, as existing borrowers carried larger balances than a year earlier, according to TransUnion's Q2 2026 Credit Industry Insights Report (CIIR). Total outstanding balances grew $116.7 billion (+4.6%) year-over-year (YoY), while the number of Canadians with access to credit expanded more modestly to 32.5 million, a 1.1% YoY increase.

Total balance growth in Q2 2026 was highest among consumers at opposite ends of the risk spectrum. Super prime balances grew 6.5% YoY to $1.74 trillion, while subprime balances increased 5.9% YoY to $62.0 billion.

Credit limits and borrowing grew nearly at the same pace across all credit tiers. Credit limits for super prime consumers increased 6.4% YoY alongside a 6.5% rise in balances, while subprime consumers saw available credit grow 5.8% alongside a 5.9% balance increase. This suggests lenders continued to extend credit in both segments while borrowing levels remained relatively stable compared to credit limits.

While overall the credit market remained healthy in Q2 2026, the data suggests Canadians are experiencing increasingly different financial realities. Borrowing growth was strongest among consumers with the highest and lowest credit profiles, indicating that while some households expanded borrowing from a position of financial strength, others may have relied more heavily on credit to manage ongoing financial pressures.

Canadians with non-mortgage debt owed an average of $28,118 in Q2 2026, up 7.6% from a year earlier. Balances increased across all major lending product categories, led by auto loans (7.9%), lines of credit (7.4%), personal loans (7.1%) and credit cards (5.1%).

Average non-mortgage balances rose across nearly all credit tiers except subprime. Growth was strongest among prime plus and super prime consumers at approximately 5% YoY. While total balance growth including mortgages was strongest among consumers at both ends of the credit spectrum, growth in average non-mortgage balances was concentrated among lower-risk consumers.

“Credit growth in the second quarter reflected a widening divide across risk tiers. Super prime, prime plus and prime consumers continued to increase non-mortgage borrowing, while subprime consumers modestly reduced balances year over year, pointing to a more cautious borrowing environment among higher-risk households,” said Matt Fabian, senior director of financial services research and consulting at TransUnion Canada. “For lenders, this underscores the potential value of differentiated strategies: prudent expansion in lower-risk segments and close monitoring of subprime performance.”

Affordability Pressures Continued to Slow New Mortgage Activity

Canada's mortgage market remained broadly stable in Q2 2026, but growth in new mortgages slowed noticeably. New mortgage origination increased 7.8% YoY, well below the double-digit growth seen in recent quarters, as affordability challenges, economic uncertainty and cautious consumer sentiment continued to dampen homebuying activity despite improving housing market conditions.

Canadians continued to carry larger mortgage balances in Q2 2026, even as fewer mortgages were outstanding overall. Total mortgage balances rose 3.9% YoY to $1.93 trillion, while the number of mortgage accounts declined slightly by 0.2%. The average outstanding mortgage balance increased 4.2% YoY to $293,270, suggesting that growth was driven by larger balances on existing mortgages, potentially stemming from higher loan amounts in prior years, mortgage renewals, and smaller legacy mortgages being paid off.

At the same time, new homebuyers were borrowing less. The average balance on newly issued mortgages fell 2.4% YoY to $354,683, suggesting affordability pressures influenced purchasing decisions and may have pushed some buyers toward lower-priced homes, larger down payments, or more affordable housing markets.

Despite ongoing affordability pressures, mortgage delinquencies remained low overall in Q2 2026, with 99.7% of mortgage holders making payments on time. However, the share of serious mortgage delinquency (60+ days past due) edged higher across all measures. Consumer-level serious delinquency rose 3 basis points (bps) to 0.29%, account-level rose 3 bps to 0.30%, and balance-level delinquency rose 6 bps to 0.31% YoY. The larger increase in balance-level delinquency indicated financial stress was becoming more concentrated among borrowers with larger mortgage balances.

Homeowners who took out new mortgages during the 2022–2023 period of rapidly rising interest rates continued to face greater affordability pressures and higher delinquency rates, particularly among the small segment of subprime borrowers. Mortgages originated in 2024 generally performed better, especially among subprime and near prime consumers. While overall mortgage delinquency rates edged higher in Q2 2026, the data continued to point to a resilient market, with financial stress concentrated among specific borrower segments rather than across homeowners more broadly.

Provinces Experiencing Mortgage Stress Differently

Mortgage payment trends continued to vary across the country in Q2 2026. While the national increase in mortgage delinquency remained modest, signs of financial stress were concentrated in provinces with higher housing costs and larger average mortgage balance, particularly Ontario and British Columbia. By contrast, several Prairie and Atlantic provinces remained stable or improved YoY.

Ontario experienced the largest YoY increase in account-level mortgage delinquency, rising 6 bps, followed by Prince Edward Island (5 bps) and British Columbia (4 bps). Alberta, Saskatchewan, Manitoba and Newfoundland and Labrador reported stable or improving results.

The differences were even more pronounced at the balance level. Ontario recorded the largest YoY increase in balance-level mortgage delinquency, rising 10 bps YoY. British Columbia followed with a 7 bps increase, reinforcing the trend that mortgage stress was more concentrated in higher-cost housing markets.

“Although mortgage delinquency rates remain low nationally, signs of credit stress are concentrated in higher-cost housing markets, where borrowers tend to carry larger mortgage balances and face greater exposure to affordability pressures and payment shocks,” said Fabian. “Provincial results suggest the recent rise in mortgage delinquencies is driven less by broad borrower distress and more by localized weakness in Canada’s most expensive markets, particularly Ontario and British Columbia.”

Most Canadians are Keeping Up with Payments, but More are Seeking Debt Relief

While most Canadians continued to keep up with their debt payments, a greater number turned to formal debt relief solutions in Q2 2026. Overall consumer credit performance remained broadly resilient, with national delinquency rates showing only modest change over the past two years. In fact, fewer consumers fell behind on payments compared to a year earlier, with the share of consumers 30+ days past due (DPD) declining to 4.27%, the lowest level observed over the past two years.

At the same time, the share of consumers who were in later stages of delinquency – 60+ and 90+ days past due – rose modestly above last year’s levels. However, delinquent consumers were generally not more likely to fall further behind than in previous periods.

Taken together, the data suggested that persistent financial stress remained concentrated among a relatively small segment of consumers rather than reflecting a widespread deterioration in credit quality.

Beneath the stable national average, provincial results moved in different directions, highlighting uneven economic conditions across the country. The most significant deterioration in serious consumer delinquency (90+ days past due) was concentrated in Alberta, Saskatchewan, and Ontario, which together accounted for most of the upward pressure observed in the national delinquency rate. While fewer consumers entered delinquency nationally, a smaller group of financially stressed borrowers continued to struggle, suggesting an uneven recovery shaped by regional affordability pressures and slower household financial recovery.

Consumer 90+ DPD Delinquency by Province

While delinquency rates remained relatively stable, more Canadians turned to formal debt relief solutions. The consumer insolvency rate rose to 1.10% in Q2 2026, up from 0.94% in Q2 2024, reaching the highest level observed over the past two years. Insolvency rates increased steadily over that time, suggesting more consumers were turning to formal debt relief after exhausting other options.

The rise in insolvencies was primarily driven by non-mortgage holders. Insolvency filing rates among non-mortgage holders have moved modestly above pre-pandemic levels, while rates among mortgage holders remained below their pre-2020 levels. This divergence indicates that financial stress isn't being evenly distributed across the population as consumers without mortgages appear to be facing greater difficulty managing rising living costs and unsecured debt obligations, while homeowners have remained comparatively more financially resilient.

The composition of insolvency filings has remained largely unchanged despite growing overall volumes. Consumer proposals continued to account for nearly 80% of all filings, up from approximately 60% before the pandemic, while bankruptcies represented only about one-fifth of filings. This mix suggests the increase in insolvencies reflects consumers seeking structured debt restructuring solutions rather than a more broad-based deterioration in household finances.

"The gap between stable delinquency and rising insolvency is one of today’s more nuanced credit dynamics. On one hand, delinquency metrics suggest the market remains resilient; however, rising insolvency filings show that certain consumers, especially those without the asset buffer of homeownership, face growing financial pressure," said Fabian. "The dominance of consumer proposals is somewhat reassuring, as it suggests more consumers are seeking debt restructuring rather than defaulting outright. The key question for the second half of 2026 is whether economic normalization can ease that pressure."

Canada’s Credit Market Shows Signs of Stabilizing, but Momentum Remains Uneven

Canada’s Credit Industry Indicator (CII) rose to 100.9 in Q2 2026, up half a point from the previous quarter and two points from a year earlier. The modest increase suggests credit conditions are stabilizing rather than strengthening, as borrowing demand recovers and credit availability moves closer to balanced levels. Softer balance growth and uneven delinquency trends indicate the credit market has improved from the 2025 slowdown but remains below the stronger conditions seen in earlier expansionary periods.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Genevieve Grant

E-mail: genevieve.grant@transunion.com

Canadians are showing modest signs of financial improvement, but affordability pressures continue to shape how they spend, borrow and protect themselves financially, according to TransUnion's (NYSE: TRU) Q2 2026 Canada Consumer Pulse Study. While financial optimism has improved over the past year, with 45% of Canadians surveyed expressing optimism about their household finances over the next 12 months, many households continue to feel financially stretched. Half (50%) of Canadians surveyed said their income isn't keeping pace with inflation, while 86% ranked inflation among their top three household financial concerns.

The survey responses suggest a gradual improvement in Canadians' financial health, driven by stronger household incomes and growing confidence about the year ahead. One-quarter (25%) of consumers reported an increase in household income over the past three months, while nearly one in four (24%) said their finances are better than expected so far this year – the highest level recorded in the past year. However, those gains do not appear to have translated into broad financial relief, as many households continue to face cost-of-living pressures and absorb higher everyday expenses.

"Many Canadians are beginning to see improvements in their financial outlook and have adapted to sustained periods of economic uncertainty. They're continuing to make decisions through an affordability lens," said Matt Fabian, senior director of financial services research and consulting at TransUnion Canada. "While improving incomes and easing economic conditions are helping households regain their footing, affordability continues to shape everyday financial decisions. We're seeing Canadians become more intentional with how they spend, borrow and manage their financial health as they adapt to a higher-cost environment.” 

Affordability Continues to Shape Spending Decisions

Although household finances are beginning to improve, many Canadians continue to make deliberate trade-offs in how they manage their budgets. The findings suggest consumers remain focused on essential expenses while remaining selective about discretionary purchases, even as some early signs point to growing financial confidence.

Among those surveyed:

• 51% cut back on discretionary spending, including dining out, travel and entertainment
• 26% cancelled subscriptions or memberships
• 18% chose to pay down debt obligations faster
• 11% increased discretionary spending, up three percentage points year over year, signaling early signs that some households are beginning to regain financial flexibility

Canadians Remain Cautious About Borrowing

Despite ongoing affordability pressures, Canadians have not materially pulled back from the credit market. One-quarter (25%) of Canadians surveyed plan to apply for new credit or refinance existing credit over the next year, unchanged from a year ago, demonstrating that consumers continue to value credit as a financial tool. However, the findings suggest many Canadians are taking a more cautious and deliberate approach to borrowing as they navigate higher living costs.

Younger Canadians continue to lead the demand for new credit, with nearly half (48%) of Gen Z consumers and 37% of Millennials planning to apply for new credit or refinance existing credit over the next year. Credit cards remain the preferred borrowing product, with nearly half (49%) of prospective borrowers planning to apply for a new credit card.

At the same time, about one in five Canadians (21%) considered applying for new credit but ultimately chose not to move forward. Among those consumers, 29% said they decided they didn't need additional credit, while 26% cited the cost of credit as the primary reason. Roughly one in five also believed they would not qualify because of their credit history (22%) or income and employment status (20%), underscoring how affordability pressures continue to influence borrowing decisions.

"We're seeing Canadians become more intentional in how they approach credit," said Fabian. "Consumers continue to recognize the value of credit, but they're carefully weighing borrowing costs, eligibility and their financial needs before making decisions. That reflects a more thoughtful approach to managing finances as households continue adapting to a higher-cost environment."

Growing Fraud Threats are Driving More Proactive Financial Management

As fraud attempts and data breaches become increasingly common, Canadians are taking a more active role in monitoring and protecting their financial health. The study found that 44% of Canadians were targeted by fraud in the past three months but did not become victims, while 20% said they had been notified they were affected by a data breach.

Against that backdrop, credit monitoring is becoming an increasingly common financial habit, with 40% of consumers checking their credit report at least monthly, up three percentage points year over year. Consumers are also increasingly monitoring their credit reports to detect fraud and verify the accuracy of their credit information, rather than to simply improve their credit scores.

Despite growing awareness of cybersecurity risks, significant knowledge gaps remain. One-third (33%) of consumers reported taking no action to address cybersecurity concerns, while more than half (51%) of those consumers said they were unsure what steps to take.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries and territories, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit transunion.ca. 

Key findings from TransUnion report:

• Credit delinquencies showed signs of stabilizing during a period of relative economic stability

• Mortgage balances continued to climb, while delinquency rates returned to pre-pandemic levels

• Regional delinquency trends highlight diverging risk profiles across the provinces

Gen Z is emerging as the fastest growing and most dynamic segment in the Canadian credit market, according to TransUnion analysis released alongside the Q1 2026 Credit Industry Insights Report (CIIR). As more Gen Z consumers enter the financial ecosystem and become credit eligible, growth in credit demand and supply, coupled with year-over-year (YoY) improvements in credit performance, has supported this trend.

The number of credit active Gen Z consumers increased by more than 460,000 new participants YoY, a 7.8% rise – the fastest growth across all generations. At the same time, Gen Z borrowers also took on more non-mortgage debt, with average balances up more than 9% YoY, outpacing other generations. This suggests a shift beyond early credit adoption toward higher credit utilization, as more Gen Z consumers expand their wallet profiles with additional credit products.

Recent borrowing patterns among Gen Z consumers reflect demand for products offering accessible funding, streamlined approval processes and flexible repayment options, which suggest increased use of credit for day-to-day expenses rather than longer-term borrowing. While this group generally holds a higher share of credit card and personal loan debt, older Gen Z consumers are beginning to participate in secured loans, such as auto loans and mortgages. Although Gen Z currently carries lower overall debt on average than other generations, their balances may continue to grow as more consumers enter the market and existing borrowers move through additional life stages.

Non-Mortgage Balance Per Consumer by Generation

Source: TransUnion Canada Credit Database

Gen Z consumers are significantly less likely to be scored in above prime risk tiers than the overall population, which is largely due to their shorter credit histories and thinner credit files on average. Currently, 19.9% of Gen Z consumers are considered super prime, compared to 42.2% of the total population. However, many Gen Z consumers are still early in their credit journeys and have potential for future score improvements and broader access to credit products over time access to the right products and data, as demonstrated by prior TransUnion studies.

Despite higher balances and participation, credit performance among Gen Z consumers improved across all levels of delinquency over the past year, showing that fewer Gen Z consumers have fallen behind on payments. However, Gen Z still had the highest incidence of delinquency compared to other generations, reflecting their earlier stage in the credit lifecycle and lower credit scores.

Serious Delinquency Rates by Generation

Source: TransUnion Canada Credit Database

Overall growth among older generations may moderate over the next three to five years as consumers continue to pay down existing debt and slow their rate of new borrowing. As a result, younger borrowers may represent an increasingly important segment of future credit growth, while remaining relatively early in their credit journeys.

“The Canadian credit market is transitioning to a phase of stabilizing risk, with signs of normalization. While Gen Z continues to exhibit higher delinquency rates than other generations, they have shown the strongest year-over-year improvement in credit performance, signaling improving credit performance trends,” said Matt Fabian, senior director of financial services research and consulting at TransUnion Canada. “These trends may create opportunities for lenders to balance risk management and growth objectives, particularly in high-demand segments like Gen Z.”

Canadian Consumer Credit Delinquencies Show Signs of Stabilization

Canadian consumers are showing signs that credit stress may be stabilizing, with serious delinquency rates across major lending products remaining above pre-2023 levels but rising more slowly or remaining flat in recent quarters. Total consumer delinquency (90+ days past due) rose from 1.48% in early 2022 to 1.86% in Q1 2026, with most products peaking in early 2025 before stabilizing.

Delinquencies across most product categories showed slight YoY increases in Q1 2026, but the pace of change slowed, signaling potential stabilization. Credit cards and lines of credit began to level off, while personal loans showed continued strain in repayment performance. Auto lending also showed higher delinquencies, likely driven by higher vehicle costs, financing rates and other market conditions, with fraud potentially contributing to elevated delinquency levels. Mortgage delinquencies, while low compared to historic levels, have gradually increased over the past two years, indicating continued pressure in secured lending.

 Source: TransUnion Canada Credit Database

At the national level, serious consumer delinquency rates are showing signs of stabilization, although underlying performance continues to vary significantly across provinces. As of Q1 2026, total consumer delinquency (90+ days past due) across all credit products edged slightly lower YoY to 1.86%, which suggests that, while elevated, overall credit stress may be leveling off.

Regional differences have become more pronounced, highlighting differing economic conditions across the country. Alberta remains an outlier, with delinquency rising to 2.43%, up 6 basis points YoY, consistent with regions tied to industries that are historically more volatile and sensitive to economic conditions.

In contrast, several provinces have seen meaningful improvement. Manitoba, Newfoundland and Labrador, Nova Scotia and British Columbia all recorded YoY declines, which may indicate improving or stabilizing credit conditions in parts of the country.

Source: TransUnion Canada Credit Database

Mortgage Balances Continued to Grow as Delinquency Normalizes Amid Renewals

Mortgage balances continued to grow, with total outstanding balances rising 3.85% YoY to $1.91 trillion. The average mortgage balance also increased 4.3% to $290,528, which may reflect ongoing affordability pressures.

Mortgage delinquencies have also trended upward through late 2025 and into early 2026, with the national 90+ day rate reaching 0.19% in Q1 2026, up from 0.16% a year earlier. Despite this recent increase, delinquency rates remain broadly consistent with pre-pandemic levels.

Source: TransUnion Canada Credit Database

Balance-level delinquency has risen faster than account-level delinquency, with the 30+, 60+ and 90+ days past due balance-level delinquency rate increasing 13.8%, 23.9% and 29.3% YoY respectively. This suggests that higher-balance loans are disproportionately represented in delinquency, amplifying potential loss severity even as overall delinquency rates remain contained.

Mortgage delinquency trends varied across Canada, suggesting localized pressure rather than widespread deterioration. Ontario and Prince Edward Island saw the largest increases in early‑stage delinquency, while British Columbia experienced modest growth and Quebec remained stable.

In contrast, most Prairie provinces and parts of Atlantic Canada recorded lower delinquency rates, led by Newfoundland and Labrador, Alberta and Saskatchewan. Despite these improvements, delinquency levels remained highest in Saskatchewan and Newfoundland and Labrador, highlighting continued regional variation in mortgage performance.

 Source: TransUnion Canada Credit Database

“While delinquency rates remain low by historical standards, the upward trend may reflect increasing affordability pressures as higher interest rates, elevated housing costs and persistent cost‑of‑living challenges continue to weigh on household finances, particularly in higher‑priced urban markets,” Fabian said. “Delinquencies remain historically low, but rising balance sizes and affordability pressure are beginning to show, potentially indicating a gradual shift toward higher‑severity risk, particularly in Canada’s more expensive housing markets.”

Consumer Credit Index Remains Flat Year-Over-Year Despite Slow Long-Term Decline

In Q1 2026, Canada's Consumer Credit Industry Indicator (CII) rose one point from the prior quarter but remained unchanged YoY at 100.4. This stability may reflect a combination of continued positive balance behavior, a slight rise in delinquency rates and consistent levels of credit supply and demand. However, over the long term, the CII has been gradually declining from its post-pandemic peak in 2023.

Source: TransUnion Canada Credit Database

For more information or to request an interview, contact:

Manahil Munim

Manahil.Munim@edelmansmithfield.com

(416) 676-1390

A new study, The Gig Economy in Canada: Rethinking Credit Risk, Inclusion, and Market Opportunity, by TransUnion (NYSE:TU) highlights the growing importance of gig workers, who represent approximately 11%* of Canada’s workforce. Despite their increasing role in household income and the broader economy, existing credit assessment approaches do not always fully account for gig workers’ full financial profiles, pointing to a disconnect between perception and reality.

The study to be presented at TransUnion’s 2026 Canada Financial Services Summit, finds that gig work plays a meaningful and often complementary role in household income, with six in ten (63%) gig workers also earning a salary or hourly wage from full-time employment and nearly four in ten (39%) netting between $1,000 and more than $4,000 per month after expenses from their gig work. While the largest share is Millennials (34%), there are also significant shares that are Gen X (27%) and Gen Z (17%).

The gig economy refers to short-term, task-based or project-based work arrangements, often facilitated by digital platforms or apps.*

“Gig workers are a material and growing borrower segment who may be perceived as having riskier, volatile income trends and inconsistent payment behaviours,” said Matt Fabian, senior director of research and consulting for Canada at TransUnion. “They may face significantly higher friction, such as higher interest rates, lower credit limits, and process complexity during credit applications as gig income may often be excluded from formal assessments – but our findings show that perceptions about these consumers may be misplaced.”

Gig Workers Are Not Uniformly High Risk

The study indicates that gig workers’ credit profiles are broadly aligned with the overall market, with a substantial share in stronger risk tiers.

Among surveyed gig workers, 68% are in prime and above credit risk tiers,** compared to 73% of the general credit-active population. While the majority of gig workers (64%) report meeting their payment obligations without difficulty, a higher share also report payment challenges (36% of gig workers vs. 22% general population), suggesting somewhat higher financial strain for certain segments. Overall, the findings point to the importance of more tailored assessment approaches that reflect the individual profile rather than employment type alone.

Chart 1: Canada Gig Workers’ Credit Repayment Behaviour Compared to All in Canada

Source: TransUnion Gig Economy Survey Canada 2026

TransUnion Consumer Pulse Study Q1 2026

Gig Workers’ Appetite for Credit Exceeds the Broader Market, Despite Application Challenges

Gig workers report strong demand for credit, with 35% applying for new credit or refinancing in the past six months and 36% planning to do so in the next 12 months, compared to 22% of all credit-active consumers who have similar plans.

They also exhibit broadly similar participation rates across traditional credit products: 31% hold lines of credit (compared to 38% of the general population) and 22% have auto loans (compared to 23% of the general population). However, gig workers have higher participation in other areas, particularly mortgages (34% of gig workers vs. 29% of general population) and personal loans (22% of gig workers vs. 11% of general population). This higher participation in mortgages and personal loans may reflect the role of gig income in supporting major financial commitments, such as home ownership, as well as helping to manage cash flow needs in the face of income variability.

Chart 2: Credit Products Held by Gig Workers, Compared to Total Population

Source: TransUnion Gig Economy Survey Canada 2026

TransUnion Canada consumer credit database

However, nearly half of gig workers report experiencing challenges when applying for credit. Across generations, reported difficulty rates show:

• Gen Z: 57%
• Millennials: 47%
• Gen X: 63%
• Baby Boomers: 38%

Their challenges are driven by both process and documentation barriers:

• 46% cite complex application processes
• 44% cite unfavourable pricing or terms
• 44% say income variability raised questions or led to rejection
• 24% could not provide standard documentation such as pay slips

“While gig workers show strong demand for credit products, the study suggests  that many are not served to their full potential by lenders. This is despite the fact that a large share of gig workers already hold credit products and appear to have good risk scores that tend to be broadly  in line with the performance of the general population of credit‑active consumers,” said Fabian.

Gig Work Is Becoming a Durable Income Component

Gig work is evolving from a temporary solution into a sustained part of household income and financial planning, underscoring the need for lenders to better reflect this income source in credit risk and inclusion strategies.

• 71% of gig workers do not plan to leave this type of work in the near term
• 34% expect to maintain current hours, while 20% plan to increase participation

“As gig work has become an ongoing supplementary income source for many, the wider credit industry has an opportunity to rethink how these consumers are evaluated and to broaden credit inclusion by refining how non-traditional income is assessed within existing risk and process frameworks. Adapting to consumers’ evolving profiles by including alternative data, for example, could better meet the needs of more Canadian consumers while driving sustainable, long-term growth for lenders,” said Fabian.

*Source: Statistics Canada, Defining and measuring the gig economy using survey data, March 4, 2024 Reproduced and distributed on an "as is" basis with the permission of Statistics Canada.

About the Study

Conducted in March 2026 among 500 gig workers, the study explores the scale and economic role of gig workers in Canada and highlights potential opportunities for lenders to engage this growing segment. The data presented is derived from respondents’ self-reported information and has not been subject to independent verification.

Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

**CreditVision^® risk score: Subprime = 300-639; Near prime = 640-719; Prime = 720-759; Prime plus = 760-799; Super prime = 800+​#

Autocorp.ai, the credit-qualification platform purpose-built for automotive retail, today announced a partnership with TransUnion Canada to help Canadian car buyers understand their financing options earlier in the shopping process – without impacting their credit score. Through Autocorp.ai’s AVA™ platform, dealerships can access a full TransUnion credit report and score through a dealer‑initiated soft inquiry, before a test drive and before a buyer completes a formal credit application.

A Better Experience for Consumers: Fewer Surprises, More Confidence

For consumers, buying a car can be stressful when financing details only become clear late in the process. This new capability helps reduce that uncertainty. By providing earlier insight into financing options without triggering a hard inquiry, buyers can shop with more confidence, focus on vehicles that better match their budget, and avoid unnecessary last‑minute surprises — all while protecting the credit health they’ve worked to build.

What’s Changed — and Why it Matters Now

In Canadian automotive retail, dealer‑initiated soft inquiries have often provided only limited credit information. This partnership expands what’s available early in the process by enabling a deeper, more complete view through TransUnion’s bureau data – without affecting a consumer’s credit score.

The timing is also important: many financing partners already rely on TransUnion credit data when making final lending decisions. This same depth of insight can now be introduced earlier – helping align the first conversations in the showroom (or online) with the realities of financing, and supporting a smoother experience for buyers across a wide range of credit profiles

How Dealerships Benefit

Embedded directly inside Autocorp.ai’s AVA™ platform, the integration helps dealers identify qualified buyers earlier, prioritize outreach more effectively, and guide consumers toward vehicles and programs that better fit their financing options. This means fewer dead‑ends, less back‑and‑forth, and more productive conversations – for both dealership staff and the people shopping for a vehicle.

“This isn’t an incremental integration — it’s a category shift for Canadian automotive,” said Andrew Lemoine, CEO of Autocorp.ai. “Dealers and OEMs have been asking for full bureau-grade, dealer-initiated insight at the top of the funnel for years, and until now, the infrastructure simply didn’t exist in this market. Partnering with TransUnion — a name every dealer, OEM, lender, and consumer already trusts — means we can deliver the full CreditVision Report and score inside the tools our customers are already using, and let them focus their time on the buyers who are qualified on the right vehicles and programs.”

“At TransUnion Canada, we believe better information leads to better experiences — for businesses and the consumers they serve. By bringing a full credit report into a dealer-initiated soft inquiry, we’re helping Canadian car buyers get a clearer view of their financing options earlier in the journey, while protecting the credit health they’ve worked to build. We’re proud to extend the reach of TransUnion’s credit insights through Autocorp.ai’s platform, and to support responsible credit access at a key moment in the consumer journey.” — Juan Sebastian D’Achiardi, Regional President, TransUnion Canada

About TransUnion Canada

 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

About Autocorp.ai

Autocorp.ai is the credit-qualification platform built for automotive retail. Its AVA™ suite helps dealerships and OEMs identify credit-qualified buyers earlier, protect consumer credit, and close more deals with less wasted capacity. Headquartered in Ottawa, Autocorp.ai serves dealerships and OEMs across North America.

Media contacts

Autocorp.ai — Alex Vorobiev, Director of Marketing — pr@autocorp.ai

TransUnion Canada — Hyunjoo Kim, Director, Corporate Affairs & Communications – hyunjoo.kim@transunion.com

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New analysis from TransUnion (NYSE: TRU) shows that the rate of suspected digital fraud attempts involving consumers located in Canada occurred at a higher rate than the global average in 2025. Based on recent survey findings, 13% of Canadians surveyed reported losing money due to digital fraud (including schemes such as identity theft, phishing and account takeover), with a median reported loss of CAD$1,301, underscoring the potentially serious financial consequences of fraud for Canadian households.

According to TransUnion’s H1 2026 Update to the Top Fraud Trends Report, the suspected digital fraud rate* for attempted transactions where the consumer was located in Canada reached 4.4% in 2025, exceeding the global average of 3.8% during the same period. While this represents a decline from 2024 levels, Canada’s suspected digital fraud rate remained elevated relative to global levels during the same period.

Fraud risk appears to be most prevalent at the account login stage, making it one of the higher risk points in the digital consumer lifecycle. In Canada, 14.2% of account login attempts in 2025 were suspected to be fraudulent, more than three times the global average of 4.3%.  The suspected fraud rate for account creation attempts in Canada was 4.6%, showing that risk is present earlier in the lifecycle but more concentrated at the login stage.

Multiple Fraud Tactics Underscore Why Canadians Prioritize Data Security

Among the surveyed Canadians who reported losing money to digital fraud over the past year, stolen credit card fraud or fraudulent charges was the most common cause, accounting for 26% of reported losses – significantly higher than the corresponding global rate of 19%. Third-party seller scams on legitimate e-commerce sites followed at 22%, while account takeover incidents represented 21% of losses.

Together, these findings suggest that Canadian fraud losses stem from a wide range of tactics, highlighting the importance of strong personal data security as fraudsters increasingly combine identity misuse with more sophisticated digital techniques.

Most Common Digital Fraud Tactics Reported by Canadians Who Lost Money to Digital Fraud (Past Year)

Source: TransUnion consumer survey

Online Communities and Video Gaming See the Sharpest Rise in Fraud Activity in Canada

Canada’s digital fraud ecosystem appears to have evolved rapidly over the past year with notable divergences across industry sectors. For transactions where the consumer was in Canada in 2025:

• Communities (online dating, forums, etc.) experienced the highest suspected digital fraud attempt rate (11.9%) and the greatest year-over-year (YoY) increase in suspected digital fraud volume (63%) from 2024
• Video gaming followed closely, with an 11.7% suspected digital fraud attempt rate and a 53% increase in suspected digital fraud volume
• Gambling platforms had the third highest rate of suspected digital fraud at 10.9% with a 7% YoY volume increase

By comparison, global trends were more muted in those industries. Worldwide, suspected digital fraud volume in online communities declined 36% YoY, while video gaming saw a more modest increase of 7%. However, gambling increased 27%, higher than Canada. In Canada, several traditionally high‑volume sectors saw notable YoY improvements, with suspected digital fraud volume declining sharply in online retail (73%), logistics (62%) and financial services (32%).

Source: TransUnion global intelligence network

“Canadians are sending a clear signal: trust and data security now sit at the centre of every digital interaction,” said Andrew Sigfrid, Director, Fraud Analytics at TransUnion Canada. “With more than half of Canadians concerned about falling victim to identity theft and nearly eight in ten (78%) saying confidence in personal data security is very important when choosing who to do business with online, organizations should no longer treat security as a backend issue. Protecting personal data is now a frontline expectation and an important differentiator for earning and keeping consumer trust in an increasingly digital economy.”

To learn more about how TransUnion fraud prevention solutions can help businesses guard against fraud and reduce fraud losses, click here.

Methodology

TransUnion came to its conclusions about digital fraud based on a global survey of 12,730 consumers in 18 countries and regions from November 20 to December 9, 2025 and intelligence from its array of TransUnion fraud prevention solutions. 999 consumers were surveyed in Canada from Nov. 20 to Dec. 5, 2025 as part of the global survey.

Specific country and regional data in the report includes Canada, Botswana, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia.

Download the TransUnion H1 2026 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

* Suspected digital fraud attempts reflects those which TransUnion clients determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon client investigation, or 4) a corporate policy violation upon client investigation. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions.

About TransUnion® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit transunion.ca.

• Nearly one-in-five Canadians improved their credit score over the past year
• Canadian consumer credit delinquencies remained stable as consumers and lenders have adjusted to the evolving economic landscape
• Canada’s credit market poised for growth as economic conditions improve, and innovation creates opportunities for expanded credit access

In the fourth quarter of 2025, Canadian household debt reached $2.6 trillion across all credit products, according to TransUnion’s Q4 2025 Credit Industry Insights Report (CIIR). While overall debt grew 4.3% year-over-year (YoY), the number of credit active Canadians (number of Canadians with at least one credit product) increased by only 1.2%. Population growth has not been as strong a driver of balance growth recently, as lower immigration over the past 18 months has reduced demand from new‑to‑credit consumers.

Rising outstanding balances alongside slower growth in the credit‑active population indicates that borrowing activity is concentrated among existing credit users. This pattern is likely being driven by consumers using credit more actively as a financial management tool, suggesting that this trend reflects a healthier, expanding economy rather than elevated financial stress.

In Q4 2025, Canada's Consumer Credit Industry Indicator (CII) rose one point from the third quarter to 99.3, though it remained unchanged YoY. This stability was driven by the offsetting effects of continued higher credit usage and increased demand for credit, combined with a slight increase in delinquency rates and lower credit supply.

Risk Distribution Remains Healthy as Score Migration Improves

Canada’s credit market remains stable, with the overall risk distribution of credit‑active Canadians skewing to better risk tiers[1]. TransUnion insights show that Canadians in prime and better risk tiers (those with stronger repayment performance) remain firmly in the majority, increasing modestly from 71.0% in Q4 2024 to 71.6% in Q4 2025—signaling continued consumer credit resilience. Growth is particularly notable within the super prime tier (consumers considered lowest risk and with the highest credit standing), whose share rose from 40.2% to 42.1% over the same period. This steady migration into lower‑risk segments reflects the ongoing strength and resilience of Canada’s credit‑active population.

Two-thirds of Canadians remained in the same risk tier over the past year, while 19.4% improved their credit standing and migrated to a better risk tier and 14.4% moved into a worse risk tier. This downward movement is still noteworthy: 5.2% of consumers fell from prime or above into near prime or subprime categories, a shift that may signal financial stress for those households.  

Prime, prime plus and super prime consumers continue to drive majority of credit balances in Canada. More than 70% of Canadians with credit fall within prime and above prime tiers, led by the ongoing expansion of the super prime segment – now over 42% of all credit active consumers and up 2 bps. This concentration of credit among lower‑risk segments reinforces the overall stability of the credit market.

Super prime borrowers hold the largest share of debt, growing by $162 billion in two years to $1.41 trillion – a 6.9% YoY increase in 2025. Overall, the vast majority of outstanding debt – 81.6% – is held by better-risk borrowers in prime and above risk tiers. The majority of this debt is concentrated in mortgages and generally considered lower risk due to strict underwriting guidelines.

Subprime borrowers held the smallest share of balances at 5.0%, but saw the highest balance growth rate in 2025 at 8.9% YoY, pointing to increasing reliance on credit among financially vulnerable households. This acceleration of subprime debt may warrant close monitoring to ensure against rising defaults and sustain profitable growth.

“We’re seeing credit growth at both ends of the risk spectrum. While subprime consumers only hold a relatively small share of the overall household debt, their balances are rising, suggesting some financially vulnerable households are relying more heavily on credit to manage everyday costs. At the same time, super prime borrowers continue to expand their credit use from a position of strength,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “For lenders, this poses a dual challenge: supporting responsible growth among lower-risk consumers, while addressing the risk of growing credit exposure for subprime households. Enhanced and proactive risk management and inclusive lending strategies will be critical to maintaining stability and supporting upward mobility in 2026.”

Canadian Consumer Credit Delinquencies Stabilize as Economic Conditions Normalize

After rising steadily since 2021, delinquency rates (missed or late debt repayments) largely stabilized across major credit products in Q4 2025. From Q4 2021 to Q4 2023, delinquencies increased sharply across all products, driven in part by inflation and interest rate hikes. In 2024 and 2025, the pace of deterioration slowed significantly as both consumers and lenders adapted to the changing economic environment.

While some credit products continued to see modest increases in delinquency rates YoY in Q4 2025, the pace of deterioration slowed compared to recent years – pointing to a potential plateau.

• Credit card consumer delinquencies (the percentage of credit card holders 90 or more days past due) rose 2 bps to 0.95% in Q4 2025, the smallest annual increase since 2021. For Canadian lenders, this points to stabilizing, but still elevated, revolving credit stress, supporting lender strategies of targeted line management and collections for higher-risk segments rather than broad-based tightening.
• Serious consumer mortgage delinquency (60+ days past due) remained very low overall, increasing 3 bps to 0.29%. The continued low delinquency level suggests system-wide mortgage credit quality remains resilient, reinforcing the resilience of mortgage credit quality and supporting continued prudent mortgage lending to qualified borrowers.
• Installment loan serious consumer delinquency (60+ days past due) was an outlier, rising YoY from 2.44% to 2.68% (+24 bps); however, the growth rate slowed compared to previous YoY increases.   Given the high concentration of installment lending in the subprime and near prime segments, the increase in serious delinquency is consistent with expected post‑downturn behaviour, as more financially vulnerable consumers continue to lag in recovery. For lenders, this reinforces the need for disciplined underwriting and loss forecasting rather than signaling a renewed broad-based deterioration.
• Auto loan consumer serious delinquency rates (60+ days past due) saw the only YoY improvement, down 5 bps to 0.90% and marking the first improvement in four years. Lenders may be positioned to selectively expand approvals and recalibrate pricing, especially for prime borrowers, as loss trends improve. Consumers could see slightly better financing availability—though affordability constraints may still keep non-prime terms selective.

The combination of stabilizing economic indicators, tighter lender risk management and improving consumer sentiment is contributing to a more balanced and resilient credit environment heading into 2026.

Consumer-Level Serious Delinquency by Product

Delinquency rates remained broadly stable YoY across most provinces in Q4 2025. The Atlantic and Prairie provinces saw the largest declines, suggesting stronger household financial resilience or regional economic recovery. Quebec’s delinquency rate held steady at 1.31%, continuing to be the lowest in the country and reflecting consistently strong credit performance. Alberta was the only province to see a sizable increase, rising 8 bps YoY to 2.37%, potentially linked to sector-specific volatility or higher credit exposure.

“Stabilizing and improving delinquency rates indicate that Canadians are better at managing debt after several years of volatility,” Fabian said. “These trends support greater lender confidence, encouraging increased credit availability as performance improves. They also signal strengthening consumer confidence, as households that had been struggling may now feel more secure in their financial position.”

Looking Ahead

Canada’s credit market is positioned for renewed expansion. Although some uncertainty persists, underlying economic conditions are improving. Easing macroeconomic conditions, stabilizing delinquency rates, rising consumer confidence and lenders’ strong capital positions create a foundation for cautious but accelerating growth through 2026.

Innovation is poised to further accelerate the positive momentum of Canada’s credit market. The emergence of open banking—alongside rapid FinTech growth, continued digitization, and increasing use of AI—has the potential to further expand credit access and reshape competition. Comprehensive data and analytics will continue to play a critical role by enabling lenders to identify opportunities, enhance decision-making and promote sustainable growth in a dynamic landscape.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@omc.com

Telephone: +1 647-772-0969

TransUnion and Zenbase today announced a partnership to expand the availability of rental payment information within the credit reporting ecosystem, giving renters a new way to strengthen their TransUnion credit reports and broaden access to greater financial opportunities. Rental payment information will now appear on TransUnion credit reports as a dedicated category – separate from traditional credit obligations – so that timely rent payments help improve credit files without being treated as debt. This will help Canadians showcase their responsible payment behaviour beyond traditional measures.

TransUnion has long championed financial inclusion by helping Canadians gain expanded access to credit – an important pathway to building wealth – and remains a strong proponent of reporting information that more fully reflects a consumer’s payment history. By ingesting rental payment data and treating this information as distinct from traditional credit obligations, these payments will help strengthen credit reports without being classified as debt.

Through its direct integration with property management systems, Zenbase enables property managers to activate rent reporting with no added processes or administrative overhead. This facilitates the delivery of v rental data to TransUnion, while allowing residents to be recognized for their rent payment history.

“At TransUnion, we believe every Canadian should have the opportunity to build and showcase their credit history,” said Juan Sebastian D’Achiardi, Regional President, TransUnion Canada. “By partnering with Zenbase, we’re integrating rental data that helps demonstrate financial reliability. This rental information is kept outside the core credit file and treated separately, giving lenders valuable insights to make more informed decisions, while helping renters showcase consistent payment behaviour and improve access to financial opportunities, adequately reflecting rent for what it is and not classifying it as a traditional credit obligation.”

“At Zenbase, our mission is to improve the financial health of renters by turning their largest monthly expense into an opportunity to build credit,” said Koray Can Oztekin, CEO of Zenbase. “Now with TransUnion accepting our rental data, we’re giving residents the recognition they deserve for their responsible payment history to build credit, unlock capital, and participate fully in the economy."

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care. 

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

About Zenbase

Zenbase is a Canadian financial health platform delivering the country’s only automated rent reporting and flexible rent payment solution. Guided by ESG principles, Zenbase is committed to advancing economic inclusion by empowering renters to take control of their financial futures.

For most Canadians, rent is typically the largest monthly expense, yet it doesn't contribute to building credit. Rent is also due on a fixed schedule, often misaligned with irregular pay cycles, unexpected expenses, and changing financial priorities. Zenbase addresses these challenges by turning rent into a tool for financial progress and flexibility.

Today, Zenbase is available in more than 200,000 homes across Canada, supporting a healthier and more inclusive financial ecosystem. Learn more at myzenbase.com.

* Statistics Canada. Household characteristics. 2021 Census of Population. November 15, 2023.

Contacts

TransUnion:

Hyunjoo Kim

hyunjoo.kim@transunion.com

Zenbase:

Philipp Postrehovsky

philipp@myzenbase.com

• For tenants: Recognizes monthly rental payments to support credit-building efforts.
• For housing providers: Supports proactive rent management and fosters stronger rental relationships.

TransUnion and FrontLobby are joining forces to incorporate rental payment data from FrontLobby into TransUnion’s alternative data reporting system. This integration enables renters to have their consistent, on-time rental history more broadly reported, while offering housing providers greater visibility into tenant performance and confidence in their portfolios.

TransUnion has a long history of promoting financial inclusion and expanded credit access through credit reports that more fully reflect a person’s financial behaviour. Through this collaboration, rental payment information from FrontLobby will be added to TransUnion credit reports as a dedicated category – separate from traditional credit obligations – so that timely rent payments help build credit files without being treated as debt.

FrontLobby’s platform enables monthly reporting of rent payments, helping renters establish tenant records. Serving over 60,000 housing providers, representing more than one million rental units in Canada, FrontLobby’s members have reported up to a 92% reduction in delinquencies,* demonstrating how rent reporting can support better outcomes for both housing providers and renters.

“TransUnion is committed to helping every Canadian build and demonstrate their creditworthiness. Working with FrontLobby allows TransUnion to bring rental payment data into the credit ecosystem and more precisely reflect a person’s financial reliability,” said Juan Sebastian D’Achiardi, Regional President, TransUnion Canada. “Over five million Canadian households rely on rental housing,** yet historically those payments rarely contributed to their credit report. This collaboration helps close that gap by giving renters recognition for consistent payments, adequately reflecting rent for what it is and not classifying it as a traditional credit obligation.”

“By embedding FrontLobby rent payment transparency with TransUnion's credit ecosystem, we’re equipping housing providers with enhanced insights, tenant stability, and a competitive advantage,” said Zac Killam, CoFounder of FrontLobby. “Meanwhile, responsible tenants can begin to see the long-term benefits of their dependable payment behaviour reflected in their credit report.”

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care. 

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

About Front Lobby

FrontLobby connects rent to credit. Its platform makes rent reporting accessible for both housing providers and renters, allowing rent payments to be reflected in renters’ credit profiles. The result is more transparent, consistent rental relationships for housing providers and meaningful recognition for renters, helping improve renting for everyone. http://frontlobby.com

* Front Lobby – Helping Housing Providers Run Successful Businesses: FrontLobby Rent Reporting Canada | Report Rent & Reduce Risk

** Statistics Canada. Household characteristics. 2021 Census of Population. November 15, 2023.

Contacts

TransUnion:

Hyunjoo Kim

hyunjoo.kim@transunion.com

Front Lobby:

Katie Glinski

kglinski@frontlobby.com

Canadians’ optimism about their finances waned as the cost of living continues to rise. Over half (53%) said their household income isn’t keeping pace with inflation, according to TransUnion’s (NYSE: TRU) Q4 2025 Canada Consumer Pulse Study. Nearly one-third (31%) are pessimistic about their household finances in the next 12 months, a three percentage point drop from Q3 2025. At the same time, 25% of Canadians reported they’re unable to pay at least one of their current bills or loans in full. This strain persists despite 20% saying their income rose in the past three months, while 64% reported no change and 16% experienced a decline. 

Among those who reported being unable to pay at least one of their currents bills and loans in full, nearly two thirds (63%) said that it was their credit card payments or personal loans that they would not be able to pay in full, followed by student loans (55%) and then mortgages (45%). These findings underscore the growing strain on affordability and the difficult financial choices many Canadians face.

“Affordability continues to be a concern for many Canadians as economic uncertainty impacts financial decision making,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “While many are taking proactive steps to be financially resilient, there are significant sections of the population who continue to struggle with staying on top of debt payments while navigating rising costs.”

Canadians Brace for A Recession

More than one in four (27%) Canadians believe the country is currently in a recession, while another 32% expect one within the next 12 months. A vast majority who said we’re either currently in a recession or will be in one in the next 12 months (84%) reported preparing for a possible recession. The most common stated actions include:

• Reducing spending (61%)
• Building up savings (38%)
• Paying down debt (28%)
• Ensuring credit report is accurate (9%)
• Changing jobs (8%)
• Requesting credit limit increases (7%)

• Taking on new credit (5%)   

   

Canadians Adjust Spending Habits to Help Weather Economic Instability

Economic uncertainty could be leading many Canadians to adjust their spending habits to stay on budget. Of those surveyed, over two thirds (67%) said they looked for sales and discounts more frequently in the past three months due to the current economic environment. Other adjustments made include:

• Shopping more frequently at more affordable retailers (44%)
• Buying more generic or store brands (41%)
• Using more coupons (31%)

• Taking advantage of credit card offers for special discounts more often (18%)

   

Canadians Report Cutting Discretionary Spending and Plan to Put Less Towards Retirement Funds

Only 15% of those surveyed said they have not changed their shopping habits in the past three months due to the current economic environment. Among all surveyed, more than half (51%) said they cut back on discretionary spending like dining out, travel and entertainment in the last three months, while nearly one in five (19%) expect to decrease their contributions to retirement funds or investments in the next three months, indicating a shift toward prioritizing essential goods.  This comes as over half (53%) of surveyed Canadians reported concerns with not setting aside enough money for retirement in the next three to five years.

Canadians See Credit as Key to Financial Goals – But Access Falls Short for Many

With cost-of-living top of mind, a vast majority of surveyed Canadians (82%) said that access to credit and lending products is important to achieving their financial goals. However, only 56% believe they have sufficient access, underscoring the need to close the gap faced by the underserved credit population.

One in Five Canadians Plan to Take on More Credit

Just over 1 in 5 Canadians (21%) plan to apply for new credit or refinance existing credit within the next year, with younger consumers leading the way. Nearly half of Gen Z (47%) and 31% of Millennials reported intentions to obtain new or refinance credit.

Additional TransUnion data outside of this survey shows Millennials now account for 38% of Canada’s total outstanding debt – approximately $988 billion. Overall, among those planning to apply for new credit or refinance existing credit in the next year, nearly half (47%) plan to apply for a new credit card and 23% say they’ll increase limits on existing credit cards. Other anticipated actions include applying for a buy now, pay later loan, applying for a new car loan or lease, or refinancing a mortgage or (all 20%).

“We’re seeing a continued trend of Canadians turning to credit cards to aid in their cashflow,” said Fabian. “As inflation places additional strain on Canadians’ wallets, many consumers may be looking for increased liquidity to help balance their budgets and may see credit as a useful tool to help them do so.”

Nearly One in Five Canadians Don’t Think They Would Get Approved for New Credit 

Nearly one in five (18%) of Canadians surveyed do not believe they would be approved for a new credit or lending product if they needed one, despite most viewing credit access as essential for achieving financial goals.

Moreover, just over 20% of Canadians who intended to apply for new or refinance existing credit ultimately chose not to. Of this group, nearly a quarter (24%) cited concerns about rejection due to their credit history, while 26% stated they believed it would be rejected due to their income or employment status.

Young Consumers Report Being Targeted by Fraud the Most as Tactics Evolve

Newer technologies like AI have enabled fraudsters to deploy new scams and impersonation tactics. Nearly half (46%) of Canadians surveyed reported being targeted by email, online, phone call or text message fraud in the past three months.

Of those that report being targeted, 7% said they fell victim to the fraud attempt, up one percentage point year-over-year. Younger Canadians appear to be the most vulnerable, with 54% of Gen Z indicating they had been targeted—the highest among surveyed generations. As a digital-first generation, Gen Z is likely more exposed to online fraud than other generations.

Among all surveyed, the most common tactics reported by those who said they were targeted in the last three months were:

• Phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) – 43%
• Smishing (fraudulent text messages meant to trick a person into revealing personal data) – 41%
• Vishing (fraudulent phone calls meant to trick a person into revealing personal data) – 41%

Despite these risks, over a third of Canadians (36%) said they took no action to address cybersecurity concerns in the past 60 days. Of those, nearly half (48%) said they did nothing because they didn’t know what steps to take, underscoring the need for continued education to help protect Canadians against fraud.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit, transunion.ca.

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@omc.com

Telephone: +1 647-772-0969 adjusted

• Total consumer debt rose to $2.6 trillion, driven by increased mortgage balances amid falling interest rates; mortgage originations jumped 18% YoY as Canadians opted for shorter-term fixed mortgages.
• Delinquency trends reveal widening financial disparity across regions; early-stage delinquencies declined, but late-stage delinquencies rose, with Ontario, Alberta and Quebec showing the sharpest increases.

• Credit card market shows signs of slowdown as originations declined further.

   

In the third quarter of 2025, total Canadian consumer debt grew by 4.1% to reach $2.6 trillion, according to TransUnion’s Q3 2025 Credit Industry Insights Report (CIIR). Total balances grew across all products and across all risk tiers. Mortgage balances rose 4.1% year-over-year (YoY) to $1.89 trillion, while total non-mortgage debt increased 4.3% to $673 billion. This growth was driven by the combination of rising average loan sizes as well as the number of borrowers. The number of credit-active consumers grew by 2.7% YoY, while total credit balances increased at a faster pace of 4.1% over the same period. The average non-mortgage balance per consumer reached $27,100 – up 2.6% YoY – marking a shift back to the more moderate pace of growth seen before the pandemic.

Homeowners Prioritize Affordability with Lower Interest Rates on New Mortgages

Lower interest rates led to a combination of refinancing activity and earlier renewals that drove the continued growth in mortgage originations, which were up 18% YoY. Many borrowers opted for shorter one- or three-year fixed terms, where historically the five-year mortgage term has been the most popular choice. Borrowers are strategically choosing shorter terms to wait out the current high rates, positioning themselves to potentially secure a more favourable rate when they renew in a couple of years. The shorter mortgage terms have driven turnover in the market, creating a spike in origination volumes that may continue until interest rates become steadier.

The average new mortgage loan amount increased 4.1% YoY to $359,623, indicating that affordability remains a challenge across the country, despite some easing in housing prices. The level of the national average for new mortgage amounts is primarily driven by Toronto and Vancouver, which remain Canada’s least affordable markets. Quebec City, Montreal and Saskatoon had the highest rates of average new mortgage amount increase over the last year.

Despite the increase in loan size and average owed monthly payment, mortgage delinquency rates have remained relatively low, with serious consumer delinquency rates remaining near historic lows despite an increase of 2 basis points (bps) YoY to 0.26%. Built‑in resiliency measures, such as the federal mortgage stress test, have helped reduce defaults and foreclosures, driving overall delinquency rates lower. This improvement in credit performance has reinforced stability and strength across Canada’s mortgage market.

“In today’s elevated interest rate environment, consumers are potentially tempted to opt for shorter-term mortgages to optimize for renewal at favorably lower rates,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “Lenders will need to watch out for shifts in market share and adjust retention strategies in order to maintain a strong customer base as consumers shop around for more affordable rates.”

Geographic Disparity in Credit Performance Rising

Delinquency trends are revealing a significant disparity in the ability to pay bills and loans between those who are financially secure and those experiencing financial hardship.

Early-stage delinquency rates (30 or more days past due) have declined, suggesting that fewer consumers are missing payments or that more are recovering quickly after a missed payment. However, late-stage delinquency (90+ days past due) continued to rise, indicating that those who do fall behind are struggling more severely. This contrast underscores a critical dynamic of this recovery. While overall delinquency rates may appear stable or improving, the financial health of the most vulnerable consumers is worsening and the gap between those managing to stay current and those falling deeper into delinquency is widening.

Overall consumer-level early-stage delinquency (consumers 30+ days past due) has shown signs of modest improvement this year, falling 6 bps to 4.38% in Q3 2025. Meanwhile, the late-stage delinquency rate (90+ days past due) has risen by 4 bps YoY to 1.77%. While later stage delinquency has risen slightly, these levels are in line with levels observed prior to the pandemic. Given the increase in credit activity and debt levels in recent years, a corresponding increase in delinquency is to be expected.

Geographic differences in performance also reflect divergent regional macroeconomic trends. Regional cost of living and wage growth differences have had a significant impact on delinquency variation between provinces. Additional pressure from macro-economic cycles as well as tariffs may also be disproportionately impacting certain goods-producing sectors and regions heavily dependent on U.S. trade, while other areas have experienced more resiliency.

Ontario, Alberta and Quebec have seen more pronounced performance deterioration over the past year. Alberta had the highest delinquency rate in the country and the sharpest increase in delinquency rate, rising 10 bp YoY to 2.31%. This significant rise reversed a generally improving trend in prior years and was driven by a high unemployment rate[1] increase, which generally impacts the financial stability of affected households.

Ontario’s consumer delinquency rate rose 6 bp to 1.90%, which may signal mounting financial stress as it has also seen a larger increase in its unemployment rate than other regions, rising from 5.6% in 2023 to 7.8% in 2025 likely driven by manufacturing slowdown and impacts of tariffs on auto, steel and aluminum manufacturing. Quebec’s delinquency rate increased 5 bps from the prior year to 1.26% in Q3 2025, indicating some growing credit stress from the impacts of U.S. tariffs on exports. Despite the delinquency rate increase, Quebec’s households are overall better positioned than Ontario and Alberta with relatively lower delinquency and unemployment rates.

Delinquency rates in British Columbia remained stable at 1.65%, the second lowest delinquency rate across all provinces. However, lumber tariffs and the potential for related unemployment could cause a future rise in delinquencies, especially in lumber producing areas.

Card Growth Slows Down with Scaled Back Appetite

New credit card originations remained restrained, down 8.6% YoY as lenders maintained a cautious stance. Even so, the YoY pace of decline has slowed compared to previous quarters, signaling the early signs of stabilization amid improving macroeconomic conditions. While total originations were lower, average new card limits climbed 4.8% to over $6,500, pointing to selective lending and a focus on lower risk acquisition strategies. The decline in originations also mirrors the slowing of the country’s new Canadian population, since this segment usually takes on a credit card as their first credit product.  

Average card balance per consumer rose 1.9% YoY to $4,652, with below-prime consumers seeing a sharper increase of 2.4%, compared to just 1% among prime and super-prime tiers, signaling that financial pressure is disproportionately impacting higher-risk borrowers. The recent upward trend in household financial activity suggests mounting pressure on consumers, likely driven by rising living costs and evolving spending behaviors, and has led to average card balances rising to pre-pandemic levels.

Overall revolving balances (the portion of that total balance that is carried over from one month to the next and is subject to interest charges) remained flat from prior year. However, looking at specific consumer segments shows a different, yet potentially more accurate, picture. Below prime consumers saw an increase in revolving balances, up 2% YoY, while prime and better consumers saw lower revolving balances, down 4% YoY.

Average monthly credit card spend per consumer was down 3.4% YoY to $1,373, possibly connected to consumers declining optimism around the economy amid rising unemployment and continued trade tension. 

Card delinquency rates continue to reflect a divide in consumer payment behavior. Early-stage delinquency held steady year-over-year at 2.51%, remaining more than 20 basis points below pre-pandemic levels. This stability may be partly due to lenders’ more cautious stance, including reduced originations to subprime borrowers, which has helped keep early-stage delinquencies in check. Later-stage delinquency also showed modest movement, rising just 1 basis point year-over-year to 0.91%. However, it remains slightly above pre-pandemic levels, as consumers who fall into late-stage delinquency often face mounting fees and interest, making recovery more difficult.  Additionally, the lag between financial distress and charge-offs, typically 9-12 months, means current late-stage delinquencies may reflect economic stress from earlier periods.

Millennials and baby boomers, who had seen increases in card delinquency through 2023, are showing signs of recovery, with millennial consumer-level delinquency down 3 bps YoY to 1.11% while baby boomer delinquency rates improved 1 bp to 0.49%. Gen Z consumers continued to struggle with consumer-level card delinquency as rates rose 8 bps to 1.29%. There was also improvement from subprime cardholders, with delinquency rates improving 12 bps to 10.7% after rising over 100 bps the prior year, potentially pointing to easing strain on this segment. Other risk tiers remained relatively flat compared to the prior year.

“Looking ahead, while rising unemployment and tariff-related pressures continue to pose challenges, early signs of stabilization in core economic indicators—particularly interest rates and inflation—are beginning to offer some relief to consumers. In response, issuers are cautiously re-engaging with the market through targeted acquisition strategies, disciplined credit line management and personalized offers aimed at driving sustainable balance growth while maintaining a prudent approach to risk. ,” Fabian said. “These approaches aim to capture high-value segments while maintaining portfolio resilience, positioning lenders for a more competitive and adaptive credit landscape in the months ahead.”

Consumer Credit Indicator Remains Muted Compared to Prior Year

In Q3 2025, Canada's Consumer Credit Industry Indicator (CII) fell 6 points compared to the same quarter in 2024. This lower indicator value indicates a continuing deterioration in the overall health of the Canadian credit market, reflecting weakening consumer behaviors and worsening credit supply conditions.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@omc.com

Telephone: +1 647-772-0969

[1] Statistics Canada. Table 14-10-0287-03  Labour force characteristics by province, monthly, seasonally adjusted

The Canadian Secure Token Governance Authority (CST-GA) announced today an agreement with TransUnion to provide support for Canadian telecommunications service providers to participate in the STIR/SHAKEN call authentication ecosystem. As part of this agreement, TransUnion will continue to act as the Secure Telephone Identity Policy Administrator (STI-PA) and provide system and support services to telecommunication service providers in Canada.

TransUnion serves as the STI-PA and also operates a Certification Authority (CA) in Canada, providing telecommunications service providers with the requisite STIR/SHAKEN digital certificates. Since the original agreement was signed, TransUnion has expanded its PA support to allow additional STIR/SHAKEN call authentication participants as per a subsequent CRTC decision and automated onboarding of other CST-GA approved CAs.

“Renewing our partnership with TransUnion makes sense right now as the ecosystem continues to evolve and mature,” said Jacques Sarrazin, President of the CST-GA. “The investments made by the Canadian telecommunications industry in the implementation of call authentication has helped to restore trust in phone calls. We expect that trend to continue, even in the face of the dramatic rise of AI phone fraud.”

“Canadians need stronger protection from impersonation scams and fraudulent calls,” said Juan Sebastian D’Achiardi, Regional President of TransUnion Canada. “We’re proud to continue our partnership with the CST-GA to deliver solutions that combine innovation and security. Our research shows that while 77% of Canadians value the phone channel for urgent or complex matters, 72% have ignored legitimate calls due to safety concerns and 67% assume incoming calls are unwanted. Our work helps rebuild trust in voice communication — enabling businesses to connect confidently and consumers to answer safely.”

About CST-GA

The Canadian Secure Token – Governance Authority (CST-GA) is mandated by the CRTC to direct and oversee the STIR/SHAKEN Policy Administrator and Certification Authorities for Canada. Established by a group of Canadian telecommunications carriers, the CST-GA develops policies and supports industry protocols and operational procedures for authentication of telephone calls and to mitigate spoofing and illegal robocalling.

For more information visit: www.cstga.ca  

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care. 

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

More than a tenth of both online communities and gambling transactions coming from Canada were suspected of digital fraud in the first half (H1)[1] of 2025 – with online communities experiencing a 68% year-over-year (YoY) increase in the volume of attempts.

Key Study Findings:

• Fraud losses in a year for companies of 200 Canadian business leaders surveyed increased 42% from 2024 to 2025 from $78 billion to $111 billion up 42%).
• Scams remained the leading cause of financial losses according to those surveyed, accounting for 29% of them.
• 60% of Canadian business leaders reported their customers have been victimized by fraudsters impersonating their brand in an email.
• 48% said their customers were victimized by fraudsters spoofing their business’ phone number or name on caller ID in the past year.
• Online communities (forums and dating platforms) saw the highest YoY increase in the number of suspected digital fraud attempts in Canada among all industries analyzed, climbing 68%.
• Despite financial losses from fraud increasing according to business leaders surveyed, suspected digital fraud attempts for transactions where the consumer was in Canada declined from 5.4% in H1 2024 to 4.2% in H1 2025.

According to the newly-released H2 2025 Update to the Top Fraud Trends Report from TransUnion (NYSE: TRU), Canadian business leaders said their companies lost the equivalent of 7.2% of revenues to fraud over the past year – totalling CAD$111 billion, up from CAD$78 billion in 2024. Findings in that survey also determined there is a significant concern over spoofing scams, with 48% of Canadian business leaders saying their customers were victimized by fraudsters spoofing their business’ phone number or name on caller ID in the past year, and 60% citing fake emails impersonating their brand. This comes despite a decline in the rate of suspected digital fraud[2] for attempted transactions where the consumer was in Canada. According to TransUnion’s global intelligence network, this fell from 5.4% in H1 2024 to 4.2% in H1 2025. This is higher than the overall global rate that dropped from 4.8% to 3.8% during that period. The study highlights the technologies Canadian organizations consider most effective in combating fraud, including identity verification, device reputation, and behavioral biometrics.

“The overall decline in suspected digital fraud rates is encouraging, but Canadian businesses continue to report significant financial losses,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “While both Canadian consumers and businesses are benefiting by enhanced security measures and increased awareness of what fraud looks like, vigilance remains the first line of defense to stop a fraudster in their tracks. As security measures evolve, so do the tactics fraudsters use. Even the smallest improvement in fraud detection can significantly reduce the risk of fraud-related losses.”

Major Business Losses Driven by Scams and Synthetic Identity Fraud

Scams and authorized fraud (schemes designed to trick a person into giving up something of value, such as account access or personal information) is a leading cause of business losses in Canada according to the survey of business leaders, accounting for 29% of reported losses. However, another fraud type is rising: Synthetic identity fraud (which involves using a combination of real and fabricated personal information to create a fake identity) has skyrocketed to 26% of total fraud losses according to the survey, up from 18% in 2024. This marks the largest YoY increase of any fraud type in Canada, surpassing the percentage in all other markets surveyed.

Other prominent causes of reported fraud losses include:

• Account takeover (unauthorized individuals taking over someone’s online account, i.e., bank, social media, email, without their permission) – 16%
• First-party fraud (identity misrepresentation or falsifying information for the purpose of financial gain) – 15%
• Third-party fraud (the use of stolen identity to open an account) – 13%

Canadian Business Leaders Highlight the Fraud Mitigation Tactics They Find Most Effective

Canadian business leaders report relying heavily on a mix of technology tools to help mitigate fraud, balancing the need for security while also looking to minimize the impact on customer friction.

The fraud mitigation tactics found to be most effective by Canadian business leaders include:

• Identity verification (confirming authenticity of consumer-provided information): 53%
• Device reputation (identifies a device using a combination of attributes provided by the device configuration; reputation identifies any fraud history associated with the device): 46%
• Email reputation (email attributes that may signal fraud such as validity, how long in use, how active, where seen on the internet): 42%
• Behavioral biometrics (identifies physical and behavioral interaction patterns typically associated with fraud, i.e., typing behavior): 42%
• IP intelligence (the use of internet protocol (IP) addresses to detect cyber threats or other suspicious activity): 40%
• Synthetic identity detection (data analysis to flag the potential that an identity is synthetic): 40%
• Phone number reputation (phone number attributes that may signal fraud such as type of phone, fraud history, identity linked to it): 39%

“Fraud mitigation measures are essential to ensuring that Canadians are confidently able to transact online,” added Boudreau. “New and evolving sophisticated forms of fraud are, sadly, a reality in today’s digitally connected world, and staying ahead requires an industry-wide approach leveraging the right mix of advanced tools and collaboration.”

Online Communities Increasingly Targeted by Fraudsters, Putting Canadians at Risk

Online communities like forums and dating apps saw the biggest increase in the number of suspected digital fraud attempts across all industries analyzed in H1 2025 for transactions where the consumer was in Canada, rising 68% year-over-year to a rate of 11.4%. Gambling (online betting sites) followed closely, with a suspected digital fraud attempt rate in Canada of 10.9% and a 16% year-over-year volume increase.

This shows how fraudsters are increasingly exploiting socially driven platforms, where trust and engagement are high. In contrast, traditional sectors such as financial services (2.1% H1 2025 suspected digital fraud rate in Canada with the volume of suspected digital fraud decreasing 40% YoY) and insurance (2% rate, volume decreasing 27%) have seen significant declines in the number of suspected digital fraud attempts. This could largely be due to stronger security protocols and more robust identity verification systems in these sectors.

Source: TransUnion global intelligence network

Canadians Continue to Have High Fraud Awareness, but Many Don’t Know Which Actions to Take

A separate survey of 982 Canadian consumers found that while 46% said they were targeted with email, online, phone call or text messaging fraud attempts from February to May 2025, only 6% reported falling victim, slightly below the global average of 9%. This indicates that Canadians continue to have a high level of awareness for spotting fraud attempts. However, that same survey found many Canadians are not taking steps to mitigate fraud concerns. The Q2 2025 Consumer Pulse Report revealed that nearly four in ten (37%) said they took no action in the last 60 days due to cybersecurity concerns. Many of these individuals (44%) said they didn’t do so because they didn’t know which actions to take.

“When someone falls victim to digital fraud, it’s important to take the necessary steps to mitigate any losses and prevent additional fraud from occurring,” added Boudreau. “Reporting suspected fraud to your bank or credit card company could help lessen the personal impact of the fraud. Additionally, taking proactive measures like changing passwords on all online accounts is essential to preventing fraudsters from accessing any additional data for funds. Finally, consumers should also notify credit bureaus when they suspect they have been a victim of fraud in order to have a fraud alert placed on their file.”

TransUnion came to its conclusions about digital fraud and data breaches based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes the United States, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

About TransUnion® (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@omc.com

Telephone: +1 647-772-0969

[1] The first half or H1 is from January 1 to June 30

[2] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.ge-market-trends-risks-and-opportunities

• Inflation continues to be a key driver of the growth in consumer balances over the last three years, with average non-mortgage balances rising 10% since 2022
• Home affordability remains a challenge as average new mortgage sizes climbed 6.9% year-over-year, driven by renewed housing demand
• Regional disparities in cost of living and wage growth contributed to varying delinquency trends across Canadian provinces; Alberta saw the highest level of serious delinquency (90+ days past due), rising 11 basis points to 2.29%

New data from TransUnion shows that total Canadian consumer credit balances reached $2.52 trillion in Q2 2025, up 4.4% year-over-year (YoY) according to TransUnion’s Q2 2025 Credit Industry Insights Report (CIIR). That marks a 15% increase since Q1 2022, which aligns with the onset of rising inflation rates in Canada. Once inflation is factored in,[1] however, the actual increase was just 3% (or $0.08 trillion), meaning that while debt levels have climbed, real growth in what Canadians owe was more modest than it appears.

While the average consumer total balance increased by 7% from Q1 2022 to Q2 2025, non-mortgage debt declined by 10%, a sign that rising mortgage costs are taking up more financial space in household budgets. The impact isn’t felt equally: when adjusted for inflation, Canadians in the prime and above tiers saw the largest declines in their balances, with the super prime tier dropping nearly 33%. In contrast, subprime consumers saw their inflation-adjusted average balances grow by 15%, highlighting that rising costs are hitting lower-income households the hardest.

“Subprime consumers are more likely to feel the impact of higher costs of living and may choose to take on additional debt, such as credit card balances, to help cover the costs of goods and services,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “For other risk tiers of borrowers, their card balance growth has been less than the rate of inflation, indicating that these consumers are less reliant on credit cards to maintain purchasing power.”

There continues to be regional disparity in non-mortgage debt levels, with P.E.I. and B.C. continuing to report the highest average debt levels, while Quebec and Manitoba remain at the bottom. Although the gap between the highest debt provinces and the lowest isn’t wide, that difference could potentially impact delinquency rates in higher debt provinces, especially during economic downturns.

Improved Economic Conditions Fuel Mortgage Market Growth

Canada’s housing market is showing early signs of a rebound, driven by lower interest rates and renewed demand from buyers who were previously priced out of the market. Mortgage originations (new mortgages) surged 51% YoY in Q1 2025, reaching $82.6 billion in new volume. Despite broader economic uncertainty, market activity has picked up, driven by falling rates and regulatory changes introduced in 2024.

Millennials, many of whom are first-time home buyers, drove housing demand, accounting for 41% of all new mortgages. Gen Z, while still a smaller share at 8%, was the fastest growing group, with 66% YoY origination growth. As affordability improves, more buyers may enter the market, but rising home prices may require larger down payments and/or force some to accept longer loan terms and higher cumulative interest costs over the life of their mortgage in order to manage monthly payment amounts.

The average new mortgage loan amount rose 6.9% YoY to $368,432, underscoring the ongoing affordability challenges facing homebuyers. Both Ontario and British Columbia saw average new mortgage loan sizes above the national average, driven largely by persistently high prices in Toronto and Vancouver, Canada’s most expensive housing markets.

Additionally, more than two million Canadian mortgages are set to renew between 2025 and 2026, many of which were originally secured at ultra-low interest rates near 1%.[2] As these loans reset, borrowers will likely face significantly higher monthly payments, with the latest data showing the average monthly payment up 4.7%, just over $100 per month, for the average consumer in Q2 2025.

Consumer-level serious mortgage delinquency rates (60 or more days past due) rose again in Q2 2025 to 0.27%, up 3 bps from prior year. However, the overall delinquency rate continues to remain low by historical comparisons. 

“Many homeowners have some flexibility to temper increases in their monthly mortgage payment, whether through extended amortization periods, refinancing or pre-paying,” said Fabian. “Canadian lenders remain in a very strong capital position to support consumers through short periods of potential hardship.”

Slight Rise in Serious Delinquencies with Noticeable Regional Variances

The overall consumer-level serious delinquency rate (90 days or more delinquent on any product in wallet) has grown slightly, up 4 basis points to 1.77%. This level is consistent with those observed prior to the pandemic. Given the increase in credit activity and participation in Canada, this corresponding increase in delinquency is expected.

Differences in cost of living and wage growth across provinces have a significant impact on resilience, which varies by region. Alberta saw the highest level of serious consumer delinquency rate in Q2 2025, up 11 basis points from prior year to 2.29%. Quebec remained the least delinquent province overall; however, it saw a 3-basis point increase in delinquency YoY, potentially driven in part by elevated unemployment. Notably, six provinces saw decreases in delinquencies over the past year.

“Despite encouraging signs of economic recovery and easing inflation, the Canadian credit market remains fragile,” Fabian said. “Financial institutions must remain vigilant, particularly as mortgage renewals accelerate and regional economic pressures mount. Lenders would be prudent to adopt proactive risk management strategies and support consumers through this transitional period.”

Consumer Credit Index Continues to Decline Amid Economic Uncertainty

In Q2 2025, Canada's Consumer Credit Industry Index (CII) declined by 1.4 points from the previous quarter to 98.8, marking a 6-point drop YoY. This slide reflects softening consumer spending amid rising cost-of-living pressures and subdued credit demand. Higher delinquency rates and slower repayment activity point to ongoing financial stress among households, while broader macroeconomic uncertainty is eroding consumer confidence and purchasing power. The decline in the CII underscores the need for close monitoring of credit risk and consumer resilience as the Canadian economy navigates a challenging post-pandemic recovery phase.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] 12% inflation between Q1 2022 and Q2 2025 as calculated as the cumulative Consumer Price Index increase as measured by Statistics Canada.

[2] Canada Mortgage and Housing Corporation. 2025, June 7. Canada’s Mortgage Market: Trends, Risks and Opportunities. https://www.cmhc-schl.gc.ca/observer/2025/canada-mortgage-market-trends-risks-and-opportunities

• 44% of Canadians surveyed say they plan to cut discretionary spending.
• Among Canadians who said they don’t anticipate being able to pay all their bills and loans in full, 68% said it’s their credit card payments they won’t be able to make.
• While 46% of Canadians said they were targeted by fraud in the last three months, 37% reported taking no action in response to cybersecurity concerns.
• Over half (53%) of Gen X Canadians feel their financial situation is worse than planned, compared to only 30% of Gen Z.

As Canadians continue to navigate economic uncertainty, many are adjusting their financial behaviours in response to affordability pressures and rising costs. According to TransUnion’s (NYSE: TRU) Q2 2025 Canada Consumer Pulse Study[1], 51% of Canadians surveyed had a recession in their top three household financial concerns over the next six months, and nearly half of all surveyed (44%) plan to reduce discretionary spending in the next three months. Canadians are also shifting to thriftier shopping options – 63% said they look for sales and discounts more frequently, 40% shop more frequently at more affordable retailers, and 31% use more coupons. These changes come at a time when over a quarter (27%) of Canadians say they won’t be able to pay all their current bills and loans in full and millions of Canadians’ mortgage payments face potential repayment increases.

Among Canadians who said they won’t be able to pay of their bills, 68% reported they won’t be able to pay off their total credit card payments. This could be due to these consumers prioritizing other credit payments, like mortgages. Despite the overall inflation rate returning to the Bank of Canada’s target, 96% of Canadians remain concerned about the current rate of inflation and the vast majority (83%) of all surveyed Canadian consumers had inflation in their top three household financial concerns over the next six months.

“Canadians are navigating a challenging financial landscape, with many adjusting their spending and prioritizing bill payments in response to rising costs and economic uncertainty,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “Our latest Consumer Pulse data shows that affordability concerns are top of mind, and many are taking proactive steps to stay financially resilient.”

Mortgage Renewal Stress Drives Payment Shock and Shifts in Financial Priorities

Additional research from TransUnion Canada shows that mortgage renewal stress is a key factor contributing to financial strain. As Canadians who purchased homes during the COVID-19 pandemic – when interest rates were at historic lows – begin renewing their mortgages, many are facing significantly higher payments, resulting in payment shock. This financial pressure is particularly evident among Gen X Canadians, with over half (53%) saying in the latest Consumer Pulse Study that their financial situation is worse than planned, the highest by far than any other generation surveyed.

According to The Bank of Canada’s Financial Stability Report – 2025, around 60% of Canadians’ mortgages are up for renewal in 2025 or 2026. TransUnion’s analysis shows that many of those who purchased homes during the COVID-19 pandemic – when interest rates were at historic lows – are now facing higher interest rates as they begin renewing their mortgages. The Consumer Pulse data suggests that this is leading to payment shock, a significant and often expected increase in debt payments.

TransUnion analysis shows that since March 2022, over two million consumers have experienced an increase in monthly mortgage payments, with the average monthly mortgage payment for these consumers increasing by 25% in the last three years from $1,527 in March 2022 to $1,908 in March 2025.

Consumers whose monthly mortgage payments have increased by 25% or more are also accumulating greater credit card debt – more than double the rate of those who did not have an increase in their mortgage payment. Overall, Canadians are prioritizing making mortgage payments over other credit obligations, which is leading to higher delinquencies.

Uncertainty and continued high interest rates have most likely negatively impacted mortgage demand. Nearly three-quarters (72%) of Canadians indicated in the latest Consumer Pulse Study that they are not considering purchasing a home in the next year. This may point to many consumers may be continuing to hold out for interest rate relief from the Bank of Canada.

“We’re at a critical moment where many Canadians who took on mortgages during the pandemic—when interest rates were at historic lows—are now facing rising payments and affordability pressures,” said Fabian. “With nearly CA$1.8 trillion in outstanding mortgage balances and 60% of mortgage holders up for renewal by 2026, millions could experience payment shock. Yet, despite these challenges, Canadians continue to demonstrate financial resilience—adapting their spending habits, prioritizing bill payments, and taking steps to help recession-proof their finances.”

Consumers Wary of Carrying Debt and Shift Shopping Habits as Economic Volatility Persists

Economic volatility has remained top of mind for many Canadians as over half (51%) in the Q2 2025 Consumer Pulse Study cite a recession as one of their top three financial concerns in the next six months. This uncertainty has continued to limit credit participation among Canadians of all generations, with nearly a third (30%) of all surveyed saying they are uncomfortable with owning credit products.

In effort to balance their household budgets and remain financially resilient, 74% of Canadians who said we’re currently in a recession or will be in one by the end of Q2 reported they plan on reducing their spending in order to prepare for one. Among all Canadians surveyed, many said they adjusted their shopping habits in the last three months, including:

• Looking more frequently for sales and discounts (63%)
• Buying more generic or store brands (41%)
• Shopping more frequently at affordable retailers (40%)
• Shopping at retailers with loyalty programs more often (33%)
• Using more coupons (31%)
• Taking advantage of credit card offers for special discounts more often (16%)

To curb spending, Canadians are making various cutbacks, such as digital subscriptions, with 25% reporting they cancelled a subscription or membership in the past three months.

Fraud Awareness Remains High, but Nearly 4 in 10 Canadians are Taking No Action

Canadians remain aware of fraud risks and nearly half (46%) of those TransUnion surveyed reported being targeted by email, online, phone call or text message fraud attempts in the past three months. Despite these risks, the Consumer Pulse data indicates that over a third (37%) of Canadians said they took no action in the last 60 days in response to cybersecurity concerns. Of these individuals, 44% said they did nothing because they were unsure of what actions to take.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] TransUnion’s Consumer Pulse Survey of 982 adults was conducted May 5–18, 2025

According to a TransUnion consumer survey in Canada, 70% of respondents said they’d be likely to answer calls from businesses with company name and logo; 61% said they didn’t answer a call due to safety and fraud concerns   

TELUS (T-TSX; NYSE: TU) is partnering with TransUnion (NYSE: TRU) to implement Branded Call Display (BCD), a solution that enables participating businesses to showcase their identity on incoming calls to TELUS mobility subscribers. BCD will provide TELUS customers with rich call content, including business name, logo and reason for the call on the mobile display to identify incoming callers. When combined with end-to-end call authentication, secure branded calling helps protect consumers from fraud, while helping businesses reach more customers and improve the customer experience.

“Canadians need more protection against fraud and unwanted calls,” said Juan Sebastian D’Achiardi, Regional President of TransUnion Canada. “We’re excited to partner with TELUS to implement secure branded calling. This solution will help protect Canadian consumers, reducing fraud and giving them confidence to answer the phone, so they don’t miss legitimate calls. For businesses, Branded Call Display will enable them to restore trust in the phone channel, reach more customers, enhance engagement and protect them from call spoofing and fraud.”

"In today's digital world, Canadians deserve confidence in who's calling them," said Kal Amery, Vice President, Global Carrier Solutions at TELUS. "By implementing TransUnion Branded Call Display, we're not just displaying caller information, we're verifying business identity in real-time, helping our customers avoid fraud while ensuring they don't miss important calls from legitimate businesses. This technology represents a significant step forward in our ongoing commitment to customer security."

The partnership builds upon TELUS and TransUnion's successful collaboration history, including their groundbreaking work on the first international calls authenticated by STIR/SHAKEN protocols. This new solution addresses a critical need in the Canadian market, where recent TransUnion research reveals:

●      70% of consumers would likely answer calls from businesses displaying verified company names and logos

●      61% have missed legitimate calls due to fraud concerns

●      Canadians prefer phone calls for critical communications:

• Personal, including healthcare (62 %)
• Urgent circumstances, including natural disasters (55 %)
• High-value decisions, such as financial investments (52 %)

Learn more about TELUS Partner Solutions visit telus.com/partner-solutions and TransUnion Branded Call Display.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

• New-to-credit Canadians led to greater credit participation, accounting for $2.6 billion in new credit balances in Q1 2025
• Subprime consumers are almost twice as likely to go delinquent within 12 months of opening new credit cards, compared to their pre-pandemic cohorts
• Growing concerns around Canadian consumers experiencing economic strain

The first quarter of 2025 saw mixed outcomes in the Canadian credit market, according to TransUnion’s Q1 2025 Credit Industry Insights Report (CIIR). Growth was fuelled by increased borrowing from young Canadians and newcomers. Consumer balances for non-mortgage products rose across most products, driven primarily by below prime consumers. Subprime consumers continued to struggle as their delinquency rates rose at significantly higher rates than prime and above consumers. Regional differences in cost of living and economic conditions also led to varying delinquency trends across provinces.

Gen Z Consumers Accelerated Overall Credit Participation with 30.6% Year-Over-Year Growth in New Balances

After the decline in interest rates and inflation in late 2024, Canadians' total outstanding balances across all credit products grew by 4.7% year-over-year (YoY) and total outstanding credit debt reached $2.5 trillion in Q1 2025. Continued credit expansion, propelled by younger consumers, including new Canadians entering the credit market, was a key driver of this growth. 

As Gen Z consumers continued to participate in the credit market, outstanding balances within this generation have grown 30.6% from the prior year, contributing $12 billion or 10.3% of total new balance growth. Canadian newcomers also represent a significant portion of the growing credit market, driving $2.6 billion in new credit balances, a 6.3% increase YoY.

“As a growing share of Gen Z consumers actively engage with credit, lenders face a pivotal opportunity to shape lifelong financial relationships,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “This generation values digital-first experiences, personalized education and brands that align with their values. Prioritizing credit education, fostering early loyalty and offering seamless, mobile-friendly solutions will be key to staying relevant and building trust with these new-to-market borrowers.”

Non-Mortgage Balances Continue to Grow, Driven by Below Prime Consumers

Non-mortgage debt grew 2.4% as consumer balances continued to increase across most products. However, total non-mortgage debt did not grow equally across all risk tiers. Below prime average consumer balances grew 4.4%, with subprime consumers contributing the highest increase at 6.3%, while prime plus and super prime consumer balances remained mostly flat.

The YoY growth in average balances among below prime consumers may be due to these consumers utilizing more credit to augment disposable income in the face of elevated prices. This trend was seen particularly with the growth in credit card and personal loan balances, as these are traditionally the products used by consumers for liquidity. Below prime consumer average balances across these products grew at a faster rate than overall borrower balance growth during this period.

Additionally, the data shows regional disparities in the YoY growth rates of non-mortgage debt, although province rankings did not change from the previous quarter. P.E.I. and Newfoundland had the highest average debt per borrower, while Quebec and Manitoba had the lowest. While the gap between the highest and lowest average debt balances across provinces may not appear substantial, even modest differences in average debt per consumer can significantly influence delinquency rates. Consumers in provinces with higher average debt levels may be more susceptible to increases in interest rates as well as higher everyday living costs, making them more vulnerable to financial strain and increasing the likelihood of delinquency, particularly during economic downturns.

“The rise in balances from higher-risk and more vulnerable credit consumers signals a critical moment for lenders to reassess risk strategies and engagement models. Proactive credit monitoring, tailored financial support and early intervention tools can mitigate potential delinquencies while still maintaining consumer access to credit,” said Fabian. “At the same time, consumers should continue to build financial resilience by understanding their credit profiles, seeking guidance when needed and using credit responsibly. Empowered, informed borrowers are key to a healthier credit ecosystem.”

Lower Canada Consumer Credit Index Reflects Weakening Market Conditions

Economic uncertainty has recently muted credit demand while supply remains strong. Additionally, uncertainty has shifted some credit behaviours as consumers balances have increased while credit performance has remained relatively stable from prior year, driving the Canada Consumer Credit Index to 100.3, down almost 6 points from the prior year.

Differing Impact of Economic Volatility Across Risk Tiers

A widening financial divide is emerging among credit consumers across Canada. While recent improvements in inflation and interest rates have provided relief for some, enabling them to reduce debt and strengthen their financial positions, others continue to face significant challenges. These consumers are still grappling with the prolonged effects of past economic volatility, highlighting an uneven recovery and growing disparity in financial resilience.

Overall consumer-level serious delinquency (consumers 60 days or more delinquent on any credit product) was up 11 basis points YoY to 2.71% in Q1 2025. This increase was driven in part by the recent growth in new-to-credit consumers, who generally carry higher risk in their early years due to their limited credit experience.  Even with the recent increase, the current levels of delinquency are similar to those seen prior to the pandemic.

Subprime consumers have become more likely to experience delinquency soon after opening a new product, with the delinquency rate within the first six months of opening a new credit account doubling between 2020 and 2024. This is particularly evident for below prime credit card and personal loans, where consumers may be more sensitive to interest rates. Subprime consumers that opened a credit card in 2023 or 2024 were 1.7x–2.0x as likely to go delinquent within the first 12 months of holding that card than those who opened a card in 2020. These findings further demonstrate the increased vulnerability that subprime borrowers have to macroeconomic factors such as higher interest rates and increased cost of living.

Geography is also playing a role in the vulnerability or resilience of consumers. A 16 basis point YoY increase in serious consumer delinquencies led to Alberta continuing to have the highest rate across all provinces in Q1 2025, driven by the volatility in oil and gas prices that play a large role in Alberta’s economy. While Quebec remained the province with the lowest rate of delinquencies, it had a seven basis point increase YoY.

“We’ve seen volatility in delinquency rates attributed to a mix of regional economic pressures and demographic factors. Regional variations in both cost of living as well as wage growth, along with pressure from macro-economic cycles, disproportionately impact specific regions, and hence some provinces have had more volatile consumer credit performance,” Fabian said. “These findings underscore the importance of regionally tailored lending policies and support systems to address the unique challenges faced by those households. Additionally, consumers in more vulnerable areas should stay vigilant in keeping current on payments, monitoring credit and building emergency savings.”

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

Gaming, Government and Communities were Most Targeted Sectors by Digital Fraudsters in Canada

Key Study Findings:

• 39% of Canadians surveyed said fraud concerns is the top reason why they abandon online shopping carts.
• 46% prioritize security of personal data as the #1 quality (more than cost savings or quality of goods and services) when deciding what online company to do business with.
• 13% report taking no action when discovering they became a victim of fraud.
• 43% who said they were targeted by fraud involved phishing.
• 11% of attempted digital gaming transactions (including online betting, poker, etc.) where consumer was in Canada were suspected of digital fraud in 2024.

According to the newly-released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report, more than half (56%) of 1,000 Canadians surveyed said they were targeted by fraudsters through email, online, phone call or text messaging channels from August to December 2024. Nearly one in 10 (9%) of those reporting being targeted said they fell victim to it. Furthermore, when surveyed from Nov. 21 to Dec. 6, 2024, nearly one-fifth of Canadians (17%) said they lost money due to email, online, phone call or text messaging in the past year. The number of Canadians targeted and who fell victim may be significantly higher, but people may be unaware they were targeted.

“Our research indicates that many Canadians don’t take the proper steps if they have fallen victim to Digital Fraud” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “These steps should include reporting the suspected fraud to your bank or credit card company to freeze accounts and changing all passwords. Consumers should also notify credit bureaus, including TransUnion, to place a fraud alert on their file, as well as report the incident to the Canadian Anti-Fraud Centre. If personal information was compromised or large sums of money were involved, it should be reported to the local police as well.”

Fraud concerns have major influence on who Canadians choose to do business with online.

When engaging online, concerns around security and fraud has a significant impact on Canadians’ preferences and behaviours, including when making purchases or choosing who to do business with.

According to the survey that was part of TransUnion’s State of Omnichannel Fraud Report:

• 91% of Canadians said having confidence that their personal data will not be compromised is important when choosing who to transact with online.  
• 46% said security of personal data is the number one consideration when deciding what company to do business with online, significantly higher than prioritizing cost savings (25%) and quality of goods and services (19%).  
• 70% said fraud concerns would cause them not to return to a website.
• 31% said they have switched doing online transaction to another website due to fraud or security concerns.
• 39% said fraud and/or security concerns is a top reason to abandon their online shopping cart. Conversely, 16% said having too many security steps is a top reason to abandon their online cart.
• 35% said they have abandoned an online application for a financial or insurance product before completing it.

While many Canadians took various actions after discovering they had become a victim of fraud, more than 1 in 10 (13%) reported no action at all.

Among Canadians who said they fell victim to email, online, phone call or text messaging fraud from August to December 2024, they reported taking the following actions:

• 51% contacted relevant impacted companies such as credit card issuers, retailers, etc.
• 48% placed a freeze on their credit.
• 29% placed a fraud alert on their credit report.
• 16% called the police.
• 15% contacted a company that compiles and provides credit reports.
• 13% said they took no action.

While Canadians were targeted by a mix of fraud schemes, phishing was the most reported kind.

Among those who said they were targeted by email, online, phone call or text messaging fraud in the second half of last year, the most common reported method by them was phishing (43%). Phishing is when a fraudster uses an email, website, social post or QR code that appears to legitimate meant to trick a consumer into sharing personal information. Other common fraud attempt methods reported by those who said they were targeted include:

• Smishing (40%), where fraudulent text messages try to trick recipients into revealing data.
• Vishing (35%), where fraudulent phone calls try to induce recipients into revealing personal information.
• Third-party seller scams on legitimate online retail websites (19%).

Gaming, Government and Communities Were the Top 3 Industries Targeted by Digital Fraudsters in Canada.

Gaming (including online betting, poker, etc.) had the highest rate of suspected digital fraud[1] attempts where the consumer or fraudster was in Canada when transacting. Over 11% of all attempted digital gaming-related transactions were suspected of fraud in 2024, an 80% increase from 2023. This was followed by government (9%), communities which includes online dating sites and forums (7%) and video gaming (6%).

The logistics industry, which has seen growth in shipping fraud (often perpetrated by organized crime rings), saw the greatest suspected digital fraud attempt rate and volume growth among industries analyzed, up 203% and 180% respectively for transactions from Canada YoY compared to 2023. However, the suspected digital fraud attempt rate for that industry was a relatively modest 2% in 2024. Conversely, telecommunications saw the biggest YoY suspected digital fraud attempt rate and volume decrease from 2024 (-88% and -86%) from Canada in that time period.

Canadian Sectors that Experienced Shifts in YoY Suspected Digital Fraud in Many Cases Differed from Global Changes:  

Source: TransUnion TruValidate™

“While cybercriminals will attack at any time using any channel, they appear to focus on channels most popular in the regions they are targeting,” added Boudreau. “Emails are widely used in Canadians’ personal and business lives, while many use their mobile phones for everything from work calls to ordering groceries and organizing their families’ lives. Fraudsters view these channels as the most likely way that they’ll be able to trick people into sharing personal information, which is why all Canadians need to be vigilant about responding to messages of any kind on their digital platforms.”

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate.

Specific country and regional data in the report includes Canada, Botswana, Brazil, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.

About TransUnion® (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.

TransUnion® (NYSE:TRU) Canada is helping expand credit access for new Canadians and those new to the credit market by providing a broader and more comprehensive view of a person’s payment behaviour and creditworthiness with TruVision® Trended Risk Score. The TruVision Trended Risk Score leverages new algorithms and attributes that provide deeper insights on consumers, utilizing data that captures how consumer credit spending and payment patterns have evolved since the pandemic. For New-to-Credit (NTC)[1] consumers, TruVision Trended Risk Score leverages the power of signals early in their credit tenure to better predict future risk, giving lenders the insights they need to more confidently offer credit and grow with new consumers.

“New Canadians and young consumers represent a significant portion of Canada’s population and economic power. They are actively working to build their credit profile and access to credit. With TruVision Trended Risk Score, consumers will be able to build their credit profile quicker and gain access to more credit opportunities,” said Juan Sebastian D’Achiardi, regional president of TransUnion Canada. “By offering lenders a more holistic view of consumers, they will now have better access to behavioural insights and information, increasing their ability to more confidently offer a wider range of products and services.”

According to Statistics Canada, international migration, including permanent and temporary immigration, continues to drive population growth in Canada, accounting for 92% of all growth in the third quarter of 2024[2]. In 2024, NTC consumers accounted for 28% of new credit cards opened, and 22% of all credit products opened, with new to Canada consumers estimated to account for more than half of that volume.

Gen Z Canadians, born between 1997 and 2012, remain the fastest growing segment in credit card usage, with an 18% year-over-year (YoY) growth rate in balances, compared to a 4% YoY growth rate among other generations. Gen Z consumers have accumulated $142 billion in overall credit balances as of December 2024, representing a 29.5% YoY increase, significantly outpacing the overall 4.5% balance growth rate.                          

While this generation represents a tremendous growth opportunity for lenders, these consumers exhibit higher risk, with a 0.57% delinquency rate (90 days or more days past due), compared to an average of 0.28% across other generations as of Q4 2024. Lenders can still turn to this generation to increase lending and grow by employing effective tools for credit decisioning to manage risk effectively.

“While navigating an uncertain macroeconomic environment and turbulent market conditions, lenders can now modernize their credit strategies and more confidently grow their portfolios by extending credit to young Canadians, new immigrants, and other Canadians seeking to expand their credit portfolio,” said Pamela Dodaro, chief product officer at TransUnion Canada. “Those that explore innovative ways to monitor rapid changes in consumers’ financial health will be better positioned to capture new and growing consumer segments.”

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] A New-to-Credit consumer has no prior history on their credit file.

[2] Statistics Canada, The Daily — Canada's population estimates, third quarter 2024, 2024-12-17. This does not constitute an endorsement by Statistics Canada of this product.

• Despite stabilization of macroeconomic conditions, total consumer debt and delinquency rates continue to rise
• Gen Z consumers continue to drive credit market activity
• Credit card balances hit new milestone of $124 billion and delinquency rates rise even as average monthly card spend declines

Total consumer debt in Canada hit a historic high of $2.5 trillion as outstanding balances across all credit products grew by 4.5% year-over-year (YoY) in Q4 2024, according to TransUnion’s Q4 2024 Credit Industry Insights Report (CIIR). Balances grew due to a combination of increases in both mortgage debt and non-mortgage debt. Non-mortgage debt increased 5.8% YoY with balances continuing to rise across revolving products in Q4 2024. Line of credit balances grew 4.2%, while credit card balances continued a more rapid pace of growth, increasing 9.2%. Although the rate of growth has been slowing, the overall increase remains significant.

Credit participation grew by 2.5% YoY, with 32.3 million Canadians holding at least one open credit product, a trend fueled in part by the recent decline in interest rates and inflation. Millennial and Gen Z consumers were at the forefront of this increase, collectively holding $1.1 trillion in outstanding balances, a 10% rise YoY. Gen Z consumers were the fastest-growing segment, with a 29% increase in credit participation as they diversify their debt beyond credit card debt.

Canada Consumer Credit Index Hits Lowest Level Since 2021

The Canada Consumer Credit Index fell YoY to 99.8 in Q4 2024, its lowest December level since 2020. The decline indicates a deterioration in the overall health of the Canadian retail credit market, reflecting declining consumer behaviours and weakening market conditions. Although all elements of the index were lower than the prior years’ values, slowing balances, declining demand and continued increase in delinquency rates were the strongest drivers of the decline.

Credit Card Market Growth Slowing

Credit card balances continued to grow, marking 31 months of consecutive YoY balance growth. However, this growth has moderated in recent quarters, indicating a stabilization in the market may be expected in 2025.

Bankcard originations trended lower in recent quarters, though totals remained elevated in comparison to pre-2018 levels. The recent decline in origination totals was seen across most risk tiers, with subprime leading the decline, influenced by the decrease in new Canadians entering the market after a significant reduction in immigration volume.

In an effort to manage delinquency rates, lenders have become more conservative within their risk tier targets at origination. Overall, bankcard originations dropped by 3.7% YoY, with the largest decline led by subprime at 6.9% YoY, while prime and near prime consumers grew by 3.7% and 0.4% respectively. The risk mix of originated bankcard accounts and credit lines remains consistent with 2018 and 2019 levels, indicating market moderation, metric stabilization and reversion to more familiar business cycles.

Originations growth fell across all generations. Gen Z showed the least year-over-year impact, remaining relatively flat at a decline of only 0.1% from prior year as more young adults in this generation continue to enter the credit market each year. The remaining generations saw a significant drop off from prior years, as demand in these groups for additional credit may have waned as the economy improved.

Lower inflation in recent quarters, combined with continued employment resiliency for consumers, may be driving consumers towards an improved financial health, where they balance their monthly expenses and monthly budgets. Reduced lender appetite may also play a role in this slowdown, resulting in a decrease in new credit card originations. However, despite the slowing of originations, credit card balance growth remained strong, up 9% YoY, though below the previous year’s 13% growth. The growth fueled a new balance milestone of $124 billion in Q4 2024. This was driven by higher revolving balances as consumers paid down a smaller portion of their balances. Approximately 64% of outstanding balances were revolving in Q4 2024 (+157 bp YoY) indicating that consumers are increasingly carrying balances on their cards from month to month.

Average credit card debt per borrower hit $4,681 in Q4, but has also been slowing relative to prior years, with average debt per borrower rising 6.0% YoY in Q4 2024 as opposed to 7.2% the year prior. Prime and below risk segments are increasingly tapping into their available credit, highlighting potential pockets of growing financial needs and a greater dependence on revolving debt to cover daily expenses.

Despite positive economic indicators, including lower interest rates boosting home-related purchases, ongoing economic uncertainty, and high prices for goods and services have continued to weigh on consumer spending decisions. There has been a corresponding drop-off in average monthly card spend, which fell 2.6% from prior year. Overall pressure on consumers related to the higher costs of living and lower savings rates contributed to a rise in bankcard delinquency rates. Bankcard serious consumer-level delinquency levels, defined as 90 or more days past due (DPD), continued to climb higher to 0.93% in Q2 2024, up 9 bps YoY.    

“In an environment where new account growth is slowing, credit card issuers need to focus on optimizing account management strategies,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “Strengthening customer loyalty, fostering prudent balance growth and engaging younger consumers to enhance lifetime value are crucial. Equally important is vigilant monitoring for early warning signs of rising delinquencies.”

* Acquisition results are presented one quarter in arrears

Non-Bankcard Delinquencies Also Increase Despite Economic Improvements

The current economic landscape is unique in that, despite relatively stable employment, there has been a rise in consumer loan delinquency rates. Solid employment has been offset by high interest rates that have put pressure on consumer wallets.

Overall serious consumer delinquency continues to rise on a year-over-year basis, up 16 basis points to 1.83% and reaching a five-year high, back on par with the pre-pandemic levels. From a demographic perspective, Gen Z consumers are driving high delinquency rates with delinquencies up YoY 26 bps to 2.74% in Q4 2024. Gen Z credit consumers generally have lower risk scores as they are new to credit and have a shorter lending history. They may also be feeling a greater impact from inflation and the high cost of living, which may strain their budgets. Lenders will need to continue applying advanced analytics to grow and retain this segment, as Gen Z will remain a growing proportion of new credit consumers over the next few years and ultimately will become core credit consumers throughout their lifecycle.  

"As the Canadian credit market expands, Gen Z consumers present a significant growth opportunity for lenders, especially through tailored credit card offerings,” Fabian said. “Gen Z are educated and active credit users with a growing propensity to utilize credit throughout their lifecycle. Early management is crucial, as credit cards can be a valuable financial tool for Gen Z when managed responsibly. By implementing strategies such as education and regular credit monitoring, credit cards can become an asset rather than a financial burden for Gen Z consumers, creating loyalty to lenders who provide those services."

** All data is sourced from the TransUnion Canada consumer credit database.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

• Household financial strains most felt among Gen X (51%), as this generation nears retirement.
• Housing prices of concern to 57%, with only 14% intending to take out a new mortgage in the next 12 months, and 15% considering refinancing their property.
• Millennials hold largest share of debt at $911 billion.
• Millennials most concerned about their ability to keep current with bills and loans, with 35% saying they’re not able to pay at least one in full.
• More than half of Canadians (63%) don’t expect household income to increase in next six months.

TransUnion’s Q4 2024 Consumer Pulse study* reveals that Canadians continue to feel pressure on their personal finances, with over a quarter (26%) of Canadians reporting that they anticipate not being able to pay at least one of their current bills and loans in full. This rate increases for Millennials, with 35% reporting that they anticipate not being able to make at least one of their debt payments in full. This demographic also has the largest share of consumers by age group in Canada’s credit market, holding 27% of credit accounts (debt related balances) and surpassing Baby Boomers for the first time. Despite concerns around their personal finances, more than 1 in 5 (22%) Canadians plan to take on additional credit or refinance existing credit in the next year – and of those, 43% anticipate applying for a new credit card.

This concern around making debt repayments comes despite 79% of respondents revealing that their income remained flat or increased in the past three months as well as further interest rate reductions from the Bank of Canada.

Many Canadians also continue to feel that their financial outlook is stagnant, with nearly six in 10 (59%) saying that their incomes remained the same in the last three months, and more than half (63%) saying that they don’t expect their household income to increase in the next six months.

Millennials** continue to hold the largest share of debt in the Canadian credit market at $911 billion – approximately 38% of all Canadian debt. This is likely due to shifts in life stage as Millennials are increasingly having children, buying homes and continuing to pay off existing debt.

“While economic indicators show that consumers are likely to enjoy some relief from their financial pressures in 2025, many are still navigating the challenges caused by the highest interest rates since 2001 we recently experienced,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “With more than half of households expecting their income to stay the same in the next 12 months, added liquidity created by anticipated further interest rate cuts should create some room to breathe, and fuel optimism for 2025.”

Other key findings of the study include:

Canadians continue to take on new debt despite repayment concerns

Despite concerns around their personal finances, nearly a quarter (22%) of Canadians stated that they intended to take on additional or refinance existing credit in the next year – and of those, 43% anticipate applying for a new credit card. This indicates that some consumers are seeking to have extra credit available to help offset cash flow shortages during tough financial times.  

The study found that consumers are choosing to take on more debt or refinance existing credit despite almost half (49%) expressing concern about the effect of interest rates on their ability to pay off loans, mortgage or credit. Additionally, 30% of consumers said that they’re uncomfortable having credit accounts like credit cards and loans.

Gen Z was the highest among generations who said they plan to apply for new or refinance existing credit within the next year at 34%. This comes as the total Canadian consumer credit debt reached a record $2.5 trillion in Q3 2024.

Reducing spending remains a priority as some Canadians take steps to protect themselves from recession

Less than half (44%) of Canadians didn’t think that the country would enter a recession before the end of 2024. However, among those who said we are in a recession or would be in one by the end of 2024, the most popular stated measures taken to prepare for one was reducing spending (71%), building up savings (36%) and paying down debt (33%).

As the Bank of Canada continues to reduce interest rates, the number of Canadians choosing to pay down their debt faster may increase as they see some relief on their monthly payments.

Home purchases take a back seat as interest rates and prices remain a concern

In the current high interest environment, over three quarters (76%) of Canadians said that they were unlikely to purchase a new home in the coming year – up from 72% in Q4 2023.

Of those who were considering buying a new home in the coming year, 59% (down from 63% in Q4 2023) said that rising home prices would deter them making a new home purchase (down from 63% in Q4 2023), followed by 44% who reported that rising interest rates would discourage them (down from 52% a year ago). Among those considering purchasing a new home in the next year, the generation who were the most concerned about rising housing prices was Gen X at 65%. The generation who cited lack of home availability the most was Gen Z at 40% (up from just 5% a year ago) and rising interest rates was cited the most by Millennials at 51%.

Discretionary spending cuts - a tool to ease economic pressure

As Canadians continue to navigate a tough economic environment, many report reducing discretionary spending to possibly open more cash flow for essentials like groceries and gas.

Among Canadians who said they cut back on discretionary spending like dining out, travel and entertainment in the last three months, these are the types of spending they reported decreasing in that time:

• Dining out (84%)
• Clothing and accessories (59%)
• Food delivery / ordering in (58%)
• Entertainment and media (50%)
• Large purchases (furniture, appliances, cars, etc.) (47%)
• Travel (48%)
• Home improvement (33%)
• Electronics (30%)
• Toys and hobbies (28%)

*The most recent Consumer Pulse study includes a survey of 1,000 Canadian adult consumers conducted Sept 25 – Oct 6, 2024.

**Generations are defined in this research as follows: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above. 

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

The analysis reviewed attempted ecommerce transactions from across the globe and found that 4.6% of transactions worldwide were suspected to be Digital Fraud over this time period – colloquially known as the Cyber Five. Based on proprietary insights from TransUnion’s global intelligence network, TransUnion found that the global suspected Digital Fraud rate was down from 6.0% during the same period in 2023.

The study determined that the average volume of suspected Digital Fraud attempts on any given day during that holiday period globally was 30.2% lower than it was in 2023 and 5.9% lower than during the rest of the year (1 January 2024 to 27 November 2024).

The Percentage of Suspected Ecommerce Fraud during the Cyber Five vs. Overall

Source: TransUnion TruValidate^®

“A later US Black Friday along with the general lengthening of the holiday shopping season were factors in the overall decline in transactions and the concurrent downtick in suspected Digital Fraud during the Cyber Five. The Government of Canada’s announcement of upcoming tax relief on some popular holiday items may have also influenced some consumers to delay their holiday shopping until these tax breaks kick in on December 14,” said Patrick Boudreau, head of identity management and fraud systems at TransUnion Canada. “For online retailers, this speaks to the need to maintain diligence year-round. For the remainder of this holiday shopping season, and beyond, online retailers must continue to implement tools that maintain a friction-right experience, wherein both business and consumer are protected without major disruption.”

The highest percentage of suspected Digital Fraud globally during the Cyber Five occurred on Thursday 28 November with 5.3% of all attempted digital retail transactions on that day suspected to be Digital Fraud. Similar to global data, the suspected Digital Fraud attempt rate during the holiday period was the highest on 28 November for attempted transactions where the consumer was in Canada.

The Suspected Ecommerce Fraud Rate Varies for Each Day of the 2024 Holiday Shopping Weekend

Source: TransUnion TruValidate^®

As part of this analysis, TransUnion also determined the top signals indicating risk of fraudulent ecommerce transactions during the holiday shopping season globally. This year, unusually high transaction volume from a single device and devices being newly associated with an account were among the leading indicators for potential fraud attempts.

Many Holiday Shoppers Remain Concerned About Digital Fraud

The increase in suspected Digital Fraud came as 54% of Canadian consumers indicated in the Q4 2024 Canada Consumer Pulse Survey, whose study will be released in the coming weeks, that they had been targeted by fraud scams in the preceding three months.

“The winter holidays are always hugely impactful to retailers’ bottom lines, and our recent survey indicates that consumers may be particularly eager to buy this holiday shopping season,” said Boudreau. “It’s as important as ever for retailers to equip themselves with the tools they need to detect fraud early. These tools can help minimize fraudulent transactions while at the same time protecting legitimate transactions. Retailers should seek to implement holistic fraud solutions that can help verify customer identity and authenticity as early as possible during a transaction.”  

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate^®. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country and region when conducting a transaction. 

To find out how this data varies by select countries and more, TransUnion’s holiday fraud trends can be found here.

Learn more about how TransUnion^® helps individuals and families protect against identity theft here.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

• Number of Canadians with access to credit and total outstanding consumer balances reached new records in the third quarter of 2024, mainly driven by Millennial and Gen Z consumers
• With an expectation of subsided inflation and lower interest rates, 2025 forecast projects growth in credit activity and improved performance

More Canadians borrowed and used credit in the third quarter of 2024, as interest rates and inflation continued to decline, pushing the total consumer credit debt to a record $2.5 trillion, a 4.1% year-over-year (YoY) increase, according to TransUnion’s Q3 2024 Credit Industry Insights Report (CIIR). The number of Canadians with at least one credit product rose to 32.2 million, a 3.1% increase YoY, and the number of Canadians with an outstanding balance also rose to 29.7 million, a 2.8% increase YoY.

Approximately 45% of the total household debt in Canada is held by Millennial and Gen Z consumers, who hold $1.1 trillion in outstanding balances. As more Gen Z consumers have entered the credit market, they have taken on more types of debt, making them the fastest growing segment of Canadians carrying an outstanding balance.

While the number of Canadians with access to credit increased across all risk tiers[1], subprime consumers had the largest increase, with 5.6% YoY growth in Q3 2024. This is primarily due to a portion of consumers who have struggled to make payments and have migrated into subprime from other risk tiers as their credit scores have dropped. While this riskier segment had the highest rate of growth, prime and better consumers still represent over 70% of total consumers with an outstanding balance, indicating a relatively healthy risk profile of the overall consumer credit population in Canada.  

As falling interest rates have provided some relief and the number of Canadian consumers using credit has continued to grow, there has been a spike in new origination volumes, which increased 5.3% YoY leading to $123 billion in new outstanding balances in the most recent quarter. All major credit products saw a healthy YoY growth in originations, except for line of credit product, which was down by 8.4% YoY.

Following a period of persistently high inflation rates, combined with recently rising unemployment rates, more consumers have missed payments, as serious delinquencies[2] rose 17 bps to 1.73% YoY in Q3 2024.

As debt levels have grown, consumers are facing higher minimum payments, especially for mortgages, which have risen 11% YoY due in part to higher interest rates. The overall increase in delinquencies is mainly due to missed payments on non-mortgage products, with serious non-mortgage delinquencies at 1.71%, the highest level observed since early 2019.

Regional trends are also prevalent as Alberta led all provinces with 2.21% serious consumer delinquency, followed by Manitoba with 2.02% and New Brunswick with 1.99%. Ontario experienced the highest rise in delinquency in the third quarter at 24 bps YoY, followed by Manitoba at 19 bps. More regional insights are available here.

Mixed trends in the economy and consumer credit market including lower demand, and worsening credit performance saw the TransUnion Credit Industry Indicator (CII) drop for the fifth month and is down by 7 points from the prior year to 101 in September 2024, reflecting a deterioration of the health of the Canadian credit market. The indicator [TN1] has been impacted by the fact that interest rates remain elevated in near term comparisons, weakening employment offset by the rate of inflation has eased. In addition, non-mortgage balances have remained flat and delinquency rates are also higher across most products. 

“Delinquency rates are a lagging indicator, and we expect that lowering inflation combined with interest rate reductions may provide a relief valve for some struggling consumers,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “Lenders should continue to pay heightened attention to more vulnerable consumers, as well as continue to monitor for early warning signals of risk. Canadian consumers facing pressures should focus on making at least the minimum payments on outstanding credit, when possible, to help ensure continued access to credit and [TN2] [MF3] [TN4] prevent any potential negative impact to their credit profiles.”

2025 Forecast: Varied, but Optimistic

In 2025, TransUnion expects the Canadian credit market activity and performance to be mixed, based on Q3 2024 consumer risk profiles, the projected reduction in interest rates and inflation, and some lingering effects of the past three years of elevated inflation and high cost of debt.

Taking these macro and credit dynamics into account, TransUnion conducted a forecast for Q4 2024 through Q4 2025, by leveraging four groups of macroeconomic variables in the projections: economic activity, unemployment, inflation and interest rates. Those projections looked to answer the following questions:[TN5] [MF6] 

• As interest rates decrease and economic activity improves, what can be expected in terms of demand and supply of credit?
• As consumers continue to leverage credit more responsibly, what can be expected in terms of credit performance?

TransUnion uses key macroeconomic scenarios, based on forecasting data from S&P, as input for their credit forecast model. These scenarios suggest that economic activity is expected to improve as people are spending more and job opportunities are stabilizing. Households will likely have more money to spend as both savings and wage growth increase faster than inflation. Canada's job market should keep growing, though not as quickly as the past two years, but it will support consumer credit stability.

Inflation is expected to stay within the Bank of Canada’s 2% target, driven by a drop in gas and housing costs. Lower interest rates are expected to help revitalize the mortgage market as consumers who previously waited on the sidelines might enter as affordability improves. Additionally, a lower mortgage rate environment should jump start the refinance market that has been relatively stagnant over the past three years. [TN7] Recent changes to federal mortgage lending guidelines – allowing 30-year amortizations and raising the maximum price eligible for the Canada Mortgage and Housing Corporation insurance this December – is expected to lessen the drag on household finances from mortgage renewals and lead to a faster rebound in housing sales and home prices. The objective of this forward-looking view on the market is to provide a basis for forecast originations (segmented by risk), average consumer balance (segmented by risk as well) and balance-level delinquency for cards, personal loans, auto loans, lines of credit and mortgages.

• Credit cards: TransUnion forecasts continued growth for credit cards. While origination volumes are expected to be relatively flat to prior year at 7.2 million new cards in 2025, average balance per consumer is expected to grow to $3,320 in December 2025 (up 3.9%) for prime and above consumers with a card, and increase to $9,231 (up 1.6%) average balance per consumer for those in below prime risk tiers. Our forecast shows a slight drop of 2 bps in consumer-level delinquency rates through 2025, reaching 0.89% by end of the year.
• Auto loans: Growth is expected to skew toward riskier borrowers in the below prime risk tiers, with originations in that segment projected to grow 11% by the end of 2024 and increasing another 7% through 2025, as vehicle inventories replenish and demand remains strong. Loan sizes are expected to remain relatively flat as lower interest rates may somewhat offset the continued shift toward higher average purchase price. Average loan amounts are anticipated to drop by 1% for below prime loans through 2025, while above prime balance growth is likely to fall 6% YoY. Overall consumer-level delinquency rates are expected to improve slightly, down by 2 bps YoY by the end of 2025.
• Personal loans: A more favourable interest rate environment is expected to help revitalize the personal loan market. Acquisition growth is forecasted at 11% YoY for loans to prime and better consumers and 18% YoY for below prime consumers by the end of 2025. Average balance growth is likely to remain flat at just under 1% for below prime consumers and drop 2% for prime and better consumers.
• Mortgages: As the Bank of Canada continues to lower its monetary policy rate, lower mortgage rates and a resurgence in housing demand, combined with continued low inventory, are anticipated to drive increased activity in the Canadian housing market. Mortgage origination volume is forecast to increase 7% YoY from Q4 2024 to Q4 2025, with the concentration of new originations skewed to prime and better consumers. In line with home values, outstanding mortgage average balance is forecasted to grow up to 3% by end of 2025. Driven by the quality of mortgage loans booked, delinquency rates are expected to stay relatively flat, as experienced in recent years and as macro pressures subside for Canadians.

“Though pockets of stress may linger, the continued improvement of macroeconomic conditions, such as inflation and interest rates, is expected to ease pressure on consumer wallets,” Fabian said. “Consumers have been resilient, and we expect to see growth from an increase in originations and average balances, and a positive impact on delinquencies. Lenders should leverage enhanced consumer-level data and attributes to predict these pockets of growth and address consumer needs to drive consumer trust and loyalty.”

TransUnion Canada’s Credit Industry Insights Report (CIIR) is produced quarterly to map consumer credit market trends and health.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

Canadian business leaders said their companies lost approximately 6% of their equivalent revenue – representing $78 billion – over the past year due to fraud.

In the first half (H1) of 2024, Canada saw a significant increase in suspected Digital Fraud attempts, with nearly 5.74% of all attempted digital transactions where the consumer was located in Canada involving suspected Digital Fraud, revealed a new TransUnion^® (NYSE: TRU) analysis. This is nearly an 11% year-over-year (YoY) rate increase from H1 2023, and TransUnion also documented an 11% increase in the volume of suspected Digital Fraud from Canada during this period, despite a less than a one percent (0.7%) YoY increase in the volume of transactions.

According to a recent TransUnion survey,¹ more than half (54%) of Canadians said they were recently targeted by email, phone call or text message fraud attempts. Phishing was the most common scheme type (45%), followed by smishing (42%) and vishing (39%).

The increasing use of digital transactions, combined with rising suspected Digital Fraud attempts are also impacting businesses as they potentially face revenue losses and increased operational costs due to fraud. According to a TransUnion business survey for the H2 2024 Update to the State of Omnichannel Fraud report, 200 Canadian business leaders said their companies lost approximately 6% of equivalent revenue – representing $78 billion – over the past year due to fraud. The most prominent causes of fraud loss cited by them were:

• Scam/Authorized fraud (31%): Dishonest scheme intended to trick a person into giving up something of value (e.g., account access, money, information)
• Account takeover (19%): Unauthorized individuals taking over someone’s online account (e.g., bank, social media, email) without their permission
• Synthetic identity fraud (18%): Use of a combination of personal information to fabricate a person or entity to commit a dishonest act for financial or personal gain

TransUnion also found that suspected Digital Fraud attempts – where the consumer was transacting in Canada and targeted businesses globally – increased on average by 10.5% YoY in H1 2024 compared to H1 2023 and impacted all industries.

Top Three Industries Globally with Highest Rate of Suspected Digital Fraud Attempts Coming from Canada in H1 2024

1. Gambling (online sports betting, poker, etc.) – 9.6%
2. Retail – 9.2%
3. Government – 7.7%

Top Three Industries Globally with Highest YoY Increase (H1 2024 vs H1 2023) in the Rate of Suspected Digital Fraud Attempts Coming from Canada

1. Logistics – 172.9%
2. Gambling – 79.3%
3. Video gaming – 67.8%

“Protecting customers and their businesses from fraud is essential to enabling safe and tailored consumer experiences. These findings reveal that despite the good-faith efforts that are being undertaken by companies to identify and prevent fraud to date, fraudsters continue to evolve and it’s vital that fraud prevention methods keep up with the changing times,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.

“Businesses that aren’t already doing so should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” he added.

For more insights, read the H2 2024 Update to the State of Omnichannel Fraud report.

About the Analysis

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate^® The rate or percentage of suspected Digital Fraud attempts reflect those that TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) determined to be fraudulent upon customer investigation, or 4) determined to be a corporate policy violation upon customer investigation —compared to all transactions it assessed for fraud. 

Specific country and regional data in the report include the United States, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom and Zambia.

Consumers who believe they may be a victim of fraud can find resources and information here.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

¹ TransUnion Q3 2024 Consumer Pulse survey of 1,000 consumers – conducted between July 16–23, 2024.

• Canadian household debt hits a record high $2.41 trillion, with mortgage debt making up 74% of the total outstanding balances.
• More Canadians face payment stress as consumption demand grows.
• Percentage of consumers missing payments for 90 or more days continued to rise, up 22 bps year-over-year to 1.74% as higher living costs combined with higher interest rates put more pressure on vulnerable consumer segments.

Canada’s total credit debt grew by 3.2% year-over-year (YoY) to a record $2.41 trillion during the first quarter of the year, according to TransUnion Canada’s Q2 2024 Credit Industry Insights Report, which is produced quarterly to map consumer credit market trends and health. Mortgage debt, comprising 74% of total debt, remains relatively healthy, underpinned by strong credit quality among mortgage holders and rising home values. Non-mortgage debt, including credit cards, loans, and lines of credit, continues to rise, reflective of higher consumption needs for Canadian consumers.

The TransUnion Credit Industry Indicator (CII) dropped slightly by one point from prior year to 104.5, due to a slowdown in credit supply coupled with a rise in delinquency rates, somewhat offset by higher balances and strong demand for credit.  

Credit access – the overall number of credit-active consumers – is a key driver of this growth, up by 3.7% from prior year. As of Q2 2024, there are 32 million Canadians with at least one active credit product in their wallets, which represents approximately 92% of adult credit eligible Canadians. Younger Canadians are driving the bulk of increased participation, with Millennials (born 1980 to 1994) and Gen Z (born 1995 to 2010) driving $98 billion in growth of outstanding balances year-over-year. Gen Z consumers continue to be the fastest growing segment as more consumers from this group are becoming of credit-eligible age (18+) each year and entering the credit market for the very first time.

New credit openings grew YoY 10.4% (representing $77.9 billion in balances), driven by credit cards, with new credit card balances[1] growing 7.5%. This is partly because of the continued influx of Gen Z consumers into the credit market, who typically open a credit card as their first credit product. New mortgage originations stalled, driving an increase in real estate supply, as elevated interest rates continue to leave some buyers on the sidelines.

More Consumers Face Payment Stress

Average balances for major products held by Canadian consumers continued to grow during Q2 2024, with auto loan balances showing the highest growth (6.2% YoY) driven by higher ticket prices. In Q2 2024, average balances for credit cards grew 4.7% YoY, and installment loan and mortgage average balances grew 4.4% and 3.1%, respectively.

The growth in average credit card balances was primarily driven by consumers spending more on their credit cards, while paying down less on their monthly due payments. This indicates that specific segments of Canadians may be experiencing cash flow challenges while being increasingly reliant on credit cards. The number of Canadians only making minimum payments on their credit cards increased six basis points (bps) YoY to 1.2% of all credit card holders.

Higher outstanding balances combined with the higher cost of debt may have reduced financial flexibility for some consumers, making them more vulnerable to reduced disposable income, or the capacity to meet unexpected expenses. Increases in minimum payment due amounts were observed to have the largest impact to mortgages (13.5% YoY), followed by credit cards (10.6% YoY) and personal loans (10.5% YoY), with the growth in payment due amounts seen across all risk tiers[2].

“If the Bank of Canada continues to reduce interest rates, payment pressures may ease; however, lenders need to carefully monitor consumer behaviours, and predict and identify resilient versus vulnerable borrowers. Our analysis shows that a 50 bps decrease in mortgage interest rates from current levels could reduce mortgage payments by 12% or more for new or renewable mortgages openings in the coming months and help reduce the number of Canadians that are unable to make their monthly payment,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada.

Delinquencies Continue to Rise as the Cost of Living Pressure Mounts

Overall serious consumer-level delinquency rates (90 or more days past due on payments on any account) continued to rise, up 22 bps YoY to 1.74%, as the pressures of higher cost of living combined with high interest rates have impacted vulnerable consumer segments.

This phenomenon is especially evident among subprime borrowers, with serious delinquency among this group rising 131 bps to 15.7%. Some consumers with lower credit scores are struggling to keep up with their payments in the current economic climate.

Albertans had the highest serious delinquency observed in Canada at 2.18%. This is followed by consumers in Manitoba (2.03%) and New Brunswick (2.03%). Alberta also saw the highest YoY rise in delinquency, at 30 bps YoY, followed by Ontario.

Serious Consumer Delinquency Levels by Province

In addition to rising delinquencies, consumers are progressing from early stages (30 days past due payments) into later stages (90 days past due payments) of delinquency at a higher rate. A higher percentage of delinquent consumers moved or rolled forward from early stage to later stage of delinquencies – 12% in Q2 2024, compared to a 7% roll forward rate a year ago. Across products, when borrowers fail to make payments on balances and move into later stages of delinquency, the impacts can include increased interest charges, fees and penalties, along with reduction to credit scores.

“During these times of uncertainties, lenders need to monitor and predict portfolio health indicators by leveraging holistic consumer attributes. Our recent research studies have shown that by incorporating consumer-level trended data, we can help predict resilient consumers to drive smart growth, identify early warning signs of vulnerability to mitigate risk, and prioritize collection resources effectively to predict repayments. The Canadian credit economy would benefit from enabling consumers to continue leveraging credit for responsible behaviours,” said Fabian.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969