TORONTO, Jan 13, 2026, 07:16 EST
- MNP’s latest survey reveals that 71% of Canadians anticipate the cost of living will rise in 2026
- 41% report they’re less than $200 away from missing their monthly bill payments
- MNP’s Consumer Debt Index edged higher to 87, defying the usual December decline
Most Canadians are bracing for a tougher cost of living in 2026, according to a quarterly survey from insolvency firm MNP Ltd. Released Monday, the poll revealed that 71% expect living expenses to rise, while 59% anticipate the overall economy will take a hit this year. Concerns about housing are also mounting. 1
The snapshot is crucial now as households enter the year still wary of borrowing costs, following a series of rate changes that altered mortgage and credit payments. In December, the Bank of Canada kept its overnight rate target steady at 2.25%, maintaining pressure on consumer debt servicing for banks, retailers, and policymakers. 2
The report also highlights how fragile many family budgets remain. Around 41% said they had less than $200 left before they couldn’t cover their monthly bills, while the average leftover after expenses nudged up to $907, according to MNP. “There is a widespread sense that household finances will come under increasing pressure, fuelling heightened anxiety about economic security in the year ahead,” MNP president Grant Bazian said in a statement carried by The Canadian Press. 3
According to the survey, Canadians are responding unevenly. Global News reported that 59% are taking proactive measures like adjusting their household budgets, while 17% are steering clear of the issue, instead relying on credit to handle essential costs. 4
In Alberta, expectations are notably grim. MNP’s provincial breakdown reveals that 75% of Albertans foresee the cost of living worsening, while 67% anticipate a downturn in the economy. On top of that, 64% are bracing for heavier hits from interest rates and inflation. “There is a strong expectation across Alberta that household finances will be stretched further in the coming year, amplifying concerns about economic stability,” said Lindsay Burchill, a Licensed Insolvency Trustee at MNP. 5
British Columbia respondents showed notable job market worries. According to MNP, 62% of British Columbians anticipate job market weakness—the highest figure among the provinces it surveyed—while 73% expect living costs to rise. “There is a strong expectation across B.C. that household finances will face added strain in the year ahead, heightening concern about economic security,” said Linda Paul, a Licensed Insolvency Trustee at the firm. 6
MNP’s Consumer Debt Index, a quarterly measure of Canadians’ confidence in managing debt and bills, ticked up one point to 87. The firm noted this was the first December rise since the index’s inception, despite less than half of Canadians saying they have six months of emergency savings.
One caveat with this data: the survey was done online, and the Canadian Research Insights Council points out that online surveys don’t have a margin of error since they don’t randomly sample the population. MNP reported its Ipsos poll included 2,001 adults from Nov. 28 to Dec. 1, before holiday expenses and early-year job changes could fully affect household finances. 7
For markets, the figures highlight that consumer resilience varies widely. Canada’s biggest banks — Royal Bank of Canada, Toronto-Dominion Bank, and Bank of Montreal — hold the lion’s share of household lending. Any weakening in consumer finances could quickly ripple through spending and credit quality.
