Three-quarters of Ontarians have cut spending or postponed major purchases as they take steps to safeguard their finances amid economic uncertainty

• Ontarians’ debt concerns ease, but nearly half (45%) in the province brace for increased housing costs.

TORONTO, ON – April 14, 2025 – Ontarians are taking steps to safeguard their finances amid ongoing economic uncertainty. Three-quarters say they have cut back on spending due to economic uncertainty (75%), and say they are delaying major purchases or investments (76%), according to the latest MNP Consumer Debt Index.

The majority of Ontarians (81%) say economic uncertainty has made them more cautious about taking on new debt. More than half (58%) express heightened concern about their ability to pay off debt due to ongoing uncertainty. This concern extends to broader financial stability, with two in five (43%, -3 pts) worried about the possibility of someone in their household losing their job — more than those in any other province. However, a significantly higher proportion this quarter believes they will be able to cover their living expenses in the next year without needing more credit (59%, +11 pts) and fewer regret the amount of debt they have taken on (43%, -9 pts).

“Ontarians’ feelings about their personal finances have improved after two interest rate cuts by the Bank of Canada this year. While uncertainty surrounding U.S. tariffs continues, their shifting status may be providing Ontarians with a bit of cautious optimism — particularly as the full effect of these tariffs on household budgets has yet to be felt,” explains Caryl Newbery-Mitchell, a Licensed Insolvency Trustee with MNP LTD in Toronto.

The proportion of Ontarians concerned about the impact of rising interest rates remains high (60%, -4 pts). However, overall concerns about the broader impact of interest rates have declined, due in part to the interest rate reductions this year. Far fewer Ontarians this quarter are worried about their ability to repay their debts, even if interest rates decline (40%, -17 pts), making them the least worried of those in all the provinces. More than a quarter (27%, +9 pts) feel better equipped to absorb an interest rate increase of one percentage point, while the percentage (19%, -11 pts) who feel less prepared to handle such an increase has declined. More than half (52%, -11 pts) continue to worry about being in financial trouble if interest rates rise. Ontarians are the most likely among those in all provinces (45%, +2 pts) to fear that rising interest rates could push them toward Bankruptcy.

“We’re starting to see signs of reduced financial pressure for some Ontarians after many have adjusted their budgets and interest rates ease,” says Newbery-Mitchell.

Reflecting this shift toward financial caution, significantly more Ontarians rate their personal debt situation positively this quarter (43%, +15 pts), while fewer rate it negatively (16%, -9 pts). More than half (52%) of Ontarians say they are relying more on financial advice and planning due to the uncertain economic environment.

“The findings this quarter suggest that more Ontarians are adjusting their financial habits — cutting back on spending and relying less on credit as they prepare for potential challenges in the near future,” says Newbery-Mitchell.

Far fewer Ontarians (38%, -13 pts) report being $200 or less away from financial insolvency. This is due to significantly fewer saying they are already financially insolvent (21%, -15 pts).

“About four in 10 Ontarians still report being on the brink of insolvency, and two in five have no financial cushion, flexibility, or room in their budgets. Those without a safety net could be pushed into financial distress by rising costs, increasing housing expenses, or an unexpected income loss," says Newbery-Mitchell.

Nearly half (45%) of Ontarians say they are bracing for an increase in housing costs within the next year.

"Mortgage holders across the province are nearing renewals at steeper interest rates, while rents may rise in tandem. These increasing housing costs — compounded by ongoing economic uncertainty — are just one example of the financial pressures that those already living paycheque-to-paycheque may struggle to manage,” says Newbery-Mitchell.

Newbery-Mitchell says there is help for those struggling to manage debt repayment, missing monthly payments, or simply unable to make ends meet.

“Licensed Insolvency Trustees provide unbiased advice to help Ontarians make informed decisions about both short-term financial pressures and long-term debt management — especially in uncertain financial times,” says Newbery-Mitchell.

Licensed Insolvency Trustees play a vital role in helping Ontarians navigate financial challenges and make informed decisions about managing their debt. Seeking guidance from a Licensed Insolvency Trustee can provide individuals with a clear understanding of their debt relief options in an unpredictable financial landscape. Licensed Insolvency Trustees provide free consultations to help individuals assess their financial situation, understand their options, and create customized plans to regain control of their finances.

MNP’s national team of Licensed Insolvency Trustees offers free consultations across the country to help severely indebted Canadians get unbiased debt advice, understand their rights, and determine the best path forward. Licensed Insolvency Trustees are the only federally regulated debt professionals who can assist with all the debt relief options, including Consumer Proposals and Bankruptcy, stop harassment from debt collectors, and discharge people from debt.

About MNP LTD

MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 offices from coast to coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do-it-Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3-Minute Debt Break Podcast.

About the MNP Consumer Debt Index

The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.

Now in its thirty-second wave, the Index has rebounded to 88 points, up nine points since last quarter. Visit MNPdebt.ca/CDI to learn more.

The data was compiled by Ipsos on behalf of MNP LTD between March 11 and March 14, 2025. For this survey, a sample of 2,000 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.