Canadians are turning to family—and credit—to stay afloat

A report from Mortgage Professionals Canada (MPC) found that 70% of recent home buyers say they couldn’t have purchased their property without financial help. A separate survey by Harris & Partners, a licensed insolvency trustee firm, shows that many Canadians are struggling to afford routine expenses: nearly 60% of respondents said their income isn’t sufficient to cover essentials like rent, groceries, and utilities.

The new reality of home ownership: financial help and rising payments

MPC’s State of the Housing Market survey found that seven in 10 Canadians who purchased a home in the last two years say they couldn’t have done so without help with a down payment. Across all home buyers, that figure stands at 58%.

In most cases, the “help” comes from family. A 2024 report from CIBC shows that intergenerational wealth transfers are becoming the norm, with 31% of first-time buyers receiving a financial gift from their parents. The average amount gifted has increased sharply to over $100,000—up from less than $60,000 in 2015.

Those with impending mortgage renewals are also feeling the heat. While the number has come down slightly since last year, the MPC survey notes that over 21% of Canadians say they have “high anxiety” about renewing their mortgage at higher rates.

A report from Royal LePage released earlier this year says that of the 1.2 million mortgages up for renewal this year, 57% of home owners expect their monthly payments to increase. Of that group, 81% say that the increase will put financial strain on their household, resulting in cutbacks to discretionary spending, like restaurants and entertainment.

Canadians are turning to credit to get by

The pressure of rising housing costs is just one part of a broader affordability crisis, where even everyday essentials are becoming harder to manage.

Harris & Partners surveyed more than 1,700 Canadians, and over 57% of respondents said their income is no longer enough to cover day-to-day expenses like food and household bills.

For better or worse, credit cards are bridging the gap. The 2024 Canadian Consumer Credit Card Report found that 69% of Canadian adults use credit cards to cover essential purchases—and among those credit card users, a third said they don’t pay off the full balance each month.

We’re seeing this reliance on credit showing up in the data. According to TransUnion’s 2025 Q1 report, the average Canadian now carries $4,415 in credit card debt, a 3.24% increase year over year. The report also notes rising debt across other credit products, with installment loans and mortgages both increasing by over 4% compared to the same period last year. 

How to regain control amid rising costs

The cost of living is significantly outpacing income growth, putting pressure on Canadians and leaving households stretched thin.

In this environment, staying proactive is key. Reviewing mortgage options can help home owners find better terms or rates—in some cases, it may make financial sense to break an existing mortgage and switch lenders. (Crunch the numbers with MoneySense’s mortgage penalty calculator.) 

Exploring credit solutions like balance transfers and debt consolidation can also offer some relief by lowering interest costs and simplifying payments. 

Also check if you’re receiving all of the government benefits, tax credits and tax deductions you’re eligible for, and apply for the new Canada Disability Benefit and Canadian Dental Care Plan, if you qualify. Every little bit helps.

Read more about affordability:

• Inflation climbs to 1.9% in June, led by surging vehicle costs
• Rents easing across most major markets but many tenants not feeling relief: CMHC
• Missed credit payments grew by 4% in the first quarter of 2025
• The best low-interest credit cards in Canada

About Jessica Barrett

Jessica Barrett is the editor-in-chief of MoneySense. She has extensive experience in the fintech industry and personal finance journalism.