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Canadian Businesses Carrying More Debt As Tariffs and Payment Stress Deepens

Financial Post - Banking - 2026-09-14

AI Summary

Canadian businesses are experiencing a significant increase in debt, with average commercial debt per business rising 7.3% year-over-year to $30,581 in Q2 2026, while 60+ day delinquencies on financial credit products reached a multi-year high of 4.0%. Trade tariffs are adding to the uncertainty for businesses already facing elevated debt and cash flow challenges, leading to a surge in business restructuring proposals. Debt growth is disproportionately affecting higher-risk and younger businesses, with average balances increasing substantially in these segments.

Key takeaways

  • Average business debt increased 7.3% to $30,581.
  • 60+ day delinquencies on financial credit hit a multi-year high.
  • Higher-risk and younger businesses show significant debt increases.

What this could mean for homebuyers

Mortgage news can affect fixed rates, variable-rate expectations, affordability, and buyer timing. Use this article as context, then compare today's rates or ask the AI Mortgage Advisor how it applies to your situation.

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