CIBC Report Notes Household Credit Quality Stability

Economists report that Canadian insolvency filings are returning to pre-pandemic levels as credit quality remains resilient.

Updated on Oct. 26, 2026 in Debt Relief

Isometric editorial illustration showing a single iron cog resting on a stone block, representing Canadian household credit stability. — CIBC World Markets economists reported on Tuesday that Canadian household credit quality is stabilizing as insolvency filings approach pre-pandemic levels. AI Illustration. Upload story photo >

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CIBC World Markets economists have released a new report indicating that household credit quality in Canada is showing signs of stability. Insolvency filings are returning to pre-pandemic levels, even as shifts in how consumers manage debt continue to evolve.

Why it matters

The report suggests that Canadian households are successfully navigating the current macroeconomic environment, with manageable losses anticipated in the coming year. This resilience is attributed to the conclusion of the rate repricing process and stabilizing unemployment rates.

Consumer proposals made up 77% of insolvencies in the third quarter of 2026, compared to 60% in 2019. Meanwhile, the average Canadian credit score has risen 0.2% over the past year and 1.3% since 2019.

The players

CIBC World Markets

This is the investment banking and brokerage division of the Canadian Imperial Bank of Commerce, which provides financial analysis and market research.

The details

Economists analyzed household credit data utilizing TransUnion scores to measure overall quality in the market. While delinquency rates for credit cards and lines of credit have stabilized, analysts expect these rates to rise slightly over the next couple of quarters.

In 2019, consumer proposals accounted for 60% of insolvencies.
During the third quarter of 2026, consumer proposals accounted for 77% of insolvencies.
Over the past year, the average credit score increased by 0.2%.
Delinquency rates are expected to rise over the next couple of quarters.
Household credit losses are projected to be manageable throughout the coming year.

Market Dynamics

This data offers a window into how household balance sheets are reacting to the conclusion of the Bank of Canada's interest rate policy cycle. The shift suggests that consumers are navigating a stabilizing macroeconomic environment rather than an inflationary crisis.

For the average consumer, the stabilization of credit quality suggests that current debt levels remain manageable for most households. Investors and homeowners should remain aware that delinquency rates are still expected to rise slightly in the near term.

The takeaway

While aggregate credit scores remain healthy, the shift toward consumer proposals indicates a preference for structured repayment over traditional insolvency. Canadians should review their current credit card and line of credit utilization to ensure they remain ahead of potential delinquency trends.