Statistics Canada released its provincial and territorial economic accounts for 2025 on November 5, 2026. The annual figures cover calendar year 2025 and show that households in Ontario and British Columbia devoted the largest share of their income to debt payments, even though interest payments on mortgages fell in every province and territory last year.
- Canada's real gross domestic product (GDP) rose 1.9% in 2025, after a 2.1% increase in 2024.
- GDP grew in every province, led by Newfoundland and Labrador (+4.3%); Quebec grew the least among provinces (+1.0%). The Northwest Territories (-1.7%) posted the only decline.
- The national household debt service ratio was 8.65% in 2025. Ontario (10.4%) and British Columbia (9.7%) were the highest.
- The national household saving rate rose to 4.4% in 2025 from 3.7% in 2024.
- Compensation of employees rose 4.8% in 2025, after 6.1% in 2024.
What the release shows
Statistics Canada says growth in 2025 was driven mainly by household spending, which rose 2.0%, the slowest pace since the 2020 pandemic decline. Rent, both paid and imputed, was one of the main contributors to that spending. Saving rates were highest among the provinces in Quebec (8.6%) and Alberta (8.0%). Ontario's rate (3.4%) was below the national average, while households in Newfoundland and Labrador and Nova Scotia were negative net savers, meaning they spent more than their disposable income.
On borrowing costs, the agency reports that interest payments on both mortgages and non-mortgage loans declined across all jurisdictions in 2025, as the Bank of Canada lowered its policy rate from June 2024 through October 2025. Ontario and British Columbia still had the highest debt service ratios, which measure debt payments as a share of household disposable income, because households there hold more debt on average, especially for housing. Both provinces also recorded the largest reductions in those ratios compared with other provinces.
What it means for mortgage holders
These are annual figures for 2025, and the 2025 values for some components are preliminary. Statistics Canada notes the provincial totals will be realigned with the national accounts in annual revisions due November 30, 2026.
Our interpretation: the relief in 2025 came from falling rates. Conditions have since changed: the Bank of Canada raised its policy rate to 2.50% on October 28, 2026, its first increase after a long period of cuts and holds. Households renewing in 2026 or 2027, especially in Ontario and British Columbia where debt loads are largest, should not assume the payment relief of 2025 will carry forward.
Who is affected and what to check
- Homeowners with a renewal in the next 12 to 18 months can estimate a new payment at current rates with the mortgage renewal calculator.
- Households in provinces with low or negative saving rates may want to build a cash buffer before a renewal or a variable-rate adjustment.
- Borrowers comparing renewal or refinance options can talk to a mortgage broker about term length and rate type. For more national context, see our report on GDP in August 2026.
The next provincial and territorial economic accounts release, covering 2026, is scheduled for November 9, 2027.
Sources
- Statistics Canada (The Daily), Provincial and territorial economic accounts, 2025, 2026-11-05. Accessed 2026-11-12.
- Bank of Canada, Policy interest rate, 2026-10-28. Accessed 2026-11-12.
This news summary is general information, not financial advice. Figures are from the sources listed and may be revised.
