The most recent Consumer Debt Index shows that people in Ontario are preparing for more financial hurdles this year.
According to MNP LTD’s latest quarterly index, this week, a large number of residents in Ontario anticipate tighter budgets in 2026.
Among those surveyed by Ipsos, 72 per cent expect the cost of living to increase this year.
“There is an expectation across Ontario that household finances will face added pressure, contributing to ongoing concern about economic security over the year ahead,” said MNP’s Caryl Newbery-Mitchell. “Many Ontarians expect more financial strain across daily expenses in 2026 rather than improvement.”
Fifty-eight per cent of participants believe that the economy will decline, and 59 per cent foresee a drop in housing availability.
The current trade relationship with the United States was also assessed in the latest index, with 52 per cent of respondents expecting added pressure. Concerns were also raised about higher taxes, increasing poverty and inequality, and worsening government deficits.
“Prolonged financial pressure is leading to both action and hesitation among Ontarians,” said Newbery-Mitchell. “How Ontarians respond to financial stress often depends on whether they feel they have any flexibility to work with. Additional room allows some to make budget adjustments and explore options to manage their debt. Ongoing economic uncertainty continues to reinforce debt avoidance for others.”
The index indicated that residents of Ontario are reacting differently to financial challenges. About 58 per cent have taken a “fight” approach by adjusting spending habits, attempting debt consolidation, or seeking help from a debt counsellor or a financial advisor.
An additional 28 per cent have chosen a “flight” response by ignoring their financial problems or relying heavily on credit. Thirteen per cent say they are “frozen”, unsure of what action to take either way.
The survey took place between November 28 and December 1, 2025, with Ipsos interviewing 2,001 Canadians aged 18 and older, resulting in a margin of error of 2.7 per cent.
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