Canada Q1 2025: What the Credit Aggregates Tell Us
Credit aggregates provide a bird’s-eye view of the health of Canada’s financial system. StatsCan’s Q1 2025 release reveals important trends.
Headline Numbers
As of June 2025:
- Non-mortgage consumer credit rose 2.1% year-over-year
- Business credit slowed, reflecting tighter lending conditions
- Mortgage debt growth moderated after years of rapid increases
Source: Statistics Canada, August 2025
Key Takeaways
- Consumers are still borrowing, but cautiously.
- Businesses are under credit pressure. Tight credit may impact expansion and hiring.
- Housing credit growth is cooling. Rising rates and affordability issues are weighing on mortgages.
What It Means for the Economy
Credit flows act as an economic signal. Slower growth in credit—especially to businesses—may point to slower GDP growth ahead.
For policymakers, balancing inflation control with credit availability will remain a delicate task.
Conclusion
The Q1 2025 credit aggregates confirm what many Canadians already feel: borrowing is harder, and growth is slowing.
Monitoring these trends will be critical for lenders, regulators, and households.