New MNP, TransUnion and TD data points to tightening household budgets heading into 2026
OTTAWA — A series of new surveys suggests many Canadians are starting 2026 under growing financial strain, with rising concern about living costs, housing affordability, and household debt.
The latest MNP Consumer Debt Index, conducted by Ipsos, reports 71% of Canadians expect the cost of living to worsen, while 41% say they are $200 or less away each month from financial insolvency. The survey also found 59% expect housing affordability and the overall economy to worsen.
MNP president Grant Bazian said the findings point to mounting anxiety about household finances in the year ahead.
Credit Pressure Hits Younger Canadians Hardest
A TransUnion Canada consumer study released January 13 reports 25% of Canadians say they can’t pay at least one bill or loan in full, and 84% rank “inflation for everyday goods” among their top three financial concerns.
The same study found 47% of Gen Z and 31% of Millennials plan to apply for new credit or refinance existing credit within the next year.
Spending Cuts Becoming the New Normal
A separate TD survey released January 13 found 67% of Canadians plan to cut spending in 2026, up from 51% in 2025. Top cutbacks include eating out less (55%), reducing entertainment spending (44%), and switching to store brands (39%).
Food Insecurity Remains a Key Warning Sign
Food affordability concerns are also reflected in national food bank data. Food Banks Canada’s HungerCount 2025reports nearly 2.2 million food bank visits in March 2025, the highest on record.
Political Reaction: Conservatives, Liberals, and NDP
Conservatives
In a statement circulated January 15, the Conservative Party argued Canadians are being forced to rely on debt for basic needs and blamed what it called years of Liberal mismanagement, calling for an end to “inflationary” spending and cost-driving taxes.
Liberals
Prime Minister Mark Carney, speaking in a year-end interview, acknowledged affordability pressures but said the government’s focus is sustained growth and reducing reliance on the U.S. economy, saying “we’ve got to keep on this track” and describing a “relentless” growth agenda.
Federal budget documents also frame the government’s outlook as one of continued growth and inflation near target over the projection horizon.
New Democrats
NDP Leader Don Davies, responding to the Canada Food Price Report 2026, said the country is facing a “deeply troubling” food insecurity picture and called for measures including making a prior GST/HST grocery holiday permanent and stronger enforcement of competition rules in the grocery sector.
What It Means for Northwestern Ontario
For households in Thunder Bay and across Northwestern Ontario, cost-of-living pressures can be amplified by essentials like groceries, heating, and transportation—making national trends on debt, food insecurity, and spending cutbacks especially relevant heading deeper into winter.
