Financial stress is leaving Canadian borrowers with no room to brake
Bank of Canada governor Tiff Macklem issued a stark warning Monday that a fresh round of US tariffs and elevated global oil prices risk undoing Canada’s hard-won economic recovery.https://t.co/k19n8NXNPd
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 22, 2026
Paycheque-to-paycheque borrowers are multiplying
Some 28% of workers said they would struggle to meet their obligations if their pay arrived a week late. That is a five-year high, up from 24% in 2025. Half now spend all or more of their net pay, compared with 41% a year earlier.
Savings intent is fading as well. The share of workers trying to save more fell to 43% from 51%, and only 31% reported progress. Meanwhile, 37% are carrying more debt than in previous years, and 42% say debt is limiting their ability to save.
Groceries and household products topped the list of stressors at 55%, followed by personal debt at 46%. The survey also estimates financial stress costs employers $74.3 billion in lost productivity.
“When people are spending everything they earn, relying on debt to bridge the gap and unable to build or maintain savings, even a small disruption can leave them feeling as though they are losing control,” Peter Tzanetakis, president and CEO of the National Payroll Institute, said in the release.
Working Canadians have less room to absorb a shock
Share of employed Canadians, 2025 vs. 2026
20252026
Spend all or more of their net pay
Living paycheque to paycheque
Where the pressure is coming from in 2026
| Financially stressed | 44% |
| Cite groceries and household products as a top stressor | 55% |
| Worried about personal debt | 46% |
| Say debt is limiting their ability to save | 42% |
| Carrying more debt than in previous years | 37% |
| Making progress increasing their savings | 31% |
| Feel overwhelmed by debt | 30% |
Source: National Payroll Institute, 2026 Annual Survey of Working Canadians (released September 22, 2026). Online survey of 2,196 working Canadians conducted by Framework Analytics Inc., June 22–30, 2026. Paycheque to paycheque means respondents would struggle to meet obligations if pay were delayed by one week.
What thin buffers mean for mortgage renewals
For brokers, the data points to clients who may look serviceable on paper but hold little liquidity to absorb a payment shock. That strain is already visible in Canadian consumer insolvencies hitting a 17-year high in the first quarter of 2026.
