Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsPosthaste: Insolvencies in this province are up 37% on higher interest rates, says economistAnd two other provinces aren't far behind You can save this article by registering for free here. Or sign-in if you have an account.High interest rates and household debt and stretched purchasing power have pressured households’ finances over recent years. Photo by Adobe stockSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorInsolvencies are “stabilizing” overall after shooting up from the pandemic lows, but that is masking a deteriorating situation in some provinces where consumer debt is especially high, says a new report.“Insolvencies have been relatively stable since July 2025,” Charles St-Arnaud, chief economist at Edmonton-based Servus Credit Union, said. “But this situation hides some deterioration … especially Ontario, B.C. and Manitoba.”Insolvencies, including proposals to renegotiate terms and bankruptcies, are up 36.7 per cent in British Columbia, 23.4 per cent in Manitoba and 19.8 per cent in Ontario since 2019, with those regions recording among the highest levels of consumer debt, according to Servus Credit Union.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againSt-Arnaud measured the change from 2019 because the economy was “in a more normal state on the household side,” compared with the pandemic years when insolvencies cratered due to the courts being closed, among other reasons.High interest rates and household debt and stretched purchasing power have pressured households’ finances over recent years, he said, pointing to an insolvency rate per 1,000 people in B.C. that has significantly risen above the level recorded in 2019.In Ontario, that measure now registers slightly ahead of that from seven years ago and the rate in Manitoba is also higher in the same timeframe.In the case of B.C., St-Arnaud said much of the financial strain is due to higher interest rates, estimating that a one percentage point increase on a $1-million home adds up to an additional $10,000 in interest payments a year.“That’s a big sticker shock on mortgage payments,” he said. “I’m guessing higher interest rates are causing more pressure on households there.”Financial relief, however, remains elusive for many Canadians, with higher energy prices ratcheting up the pressure and potentially causing broader inflation.The national household-debt-to-income ratio was 173.3 in the final quarter of 2025, meaning $1.73 was owed for every dollar of income. In B.C., that ratio at the end of 2025 was 190, while it was 205.9 in Ontario and 138 in Manitoba.Budgets are under strain, with higher energy prices ratcheting up the pressure, while at the same time risking causing broader inflation.St-Arnaud said the job market poses the main risk for insolvencies rising. So far, Canada hasn’t recorded elevated levels of job losses despite the imposition of United States tariffs, but he said insolvencies would likely shoot up if employers turn to layoffs.He also said insolvencies were destined to rise overall due to the dramatic increase in population since the pandemic, though immigration has slowed in the past few quarters.However, total insolvencies nationally remain well below levels recorded during the great financial crisis on a per 1,000-person basis.Month over month, insolvencies in Canada were down 5.7 per cent in May from April, when they increased from March; year over year, they were up 1.1 per cent in May compared with 7.4 per cent in April.Proposals to renegotiate terms made up 77 per cent of the insolvencies, with bankruptcies accounting for the rest, while households, not businesses, represent the bulk of the insolvency data.“While the data has been quite volatile over the past year, even on a seasonally adjusted basis, insolvencies have been stabilizing,” St-Arnaud said. Sign up here to get Posthaste delivered straight to your inbox.The Canadian dollar rose 0.6 per cent on Tuesday to take it above 71 cents U.S. for the first time in a month as the greenback slumped on cooler-than-expected inflation in the United States.U.S. inflation for June came in at 3.5 per cent year over year, beating economists’ expectations of 3.8 per cent and down from the 4.2 per cent increase recorded in May. The core measure was flat month over month versus calls for it to rise to 0.2 per cent.“For the Canadian dollar, developments should bring some relief from the recent downward pressure against the U.S. dollar,” Shaun Osborne, chief currency strategist at Scotiabank, said in a note. — Gigi Suhanic, Financial PostRead the full story here.Bank of Canada releases its interest rate decision at 9:45 a.m. ETToday’s Data: Canada existing homes sales, manufacturing sales, wholesale sales excluding petroleum, U.S. Federal Reserve releases Beige Book, U.S. producer prices indexes for food, energy and final demandEarnings: Blue Ant Media Corp., Cannara Biotech Inc., Cogeco Communications Inc.Many Canadians assume that the country’s wealthiest pay little in the way of taxes due to loopholes and rate preferences. In other words, they aren’t ponying up their fair share. That couldn’t be further from the truth, according to a study that says Canada’s top 20 per cent of families by income pay 65.3 per cent of all personal income taxes. But Kim Moody argues that’s only the tip of the tax iceberg for the richest. Keep reading here to find out more.Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors.Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.Today’s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.