Those aggregate numbers, however, may be concealing underlying fragility. A separate Equifax Canada Consumer Survey found that 25 per cent of respondents expect to make only minimum payments in coming months, while a further 7 per cent believe they are likely to fall behind.
“When we compare our recent survey to the data we are seeing today, it highlights that although the numbers are currently stable, consumers may be worried about maintaining this position,” Oakes explained. “There seems to be a significant amount of uncertainty in the current environment.”
Auto loan caution persists despite seasonal lift
The automotive sector recovered some momentum in Q2, with auto loan balances, spanning both captive financing and bank loans, rising to $179.1 billion, up 2.2 per cent from Q1 and 4.9 per cent year-over-year.
New auto loan originations, however, fell 9.2 per cent compared to Q2 2025, continuing a trend that was apparent in the first quarter as well. Average new loan amounts increased from $34,713 to $36,979 year-over-year, contributing to the rising overall balance despite the drop in volume.
“Even with financing incentives and lower used vehicle prices, many consumers appear to be holding off on big purchases like new vehicles and waiting to see what the economy will bring,” Oakes said. “Economic conditions and employment uncertainty continue to influence household decisions.”