Finance

The House of Commons Standing Committee on Finance (FINA) met on April 23, 2026, to study household debt in Canada. Appearing as witnesses were Philippe d’Astous, an associate professor at HEC Montréal; Brian Dijkema, president of Cardus; and Grant Bazian and Sheri Aberback, president and senior vice-president of MNP LLP, respectively.

Philippe d’Astous testified that household debt is problematic partly because many credit products are difficult to understand, even for educated consumers, leading people to make borrowing decisions without grasping future implications. He noted that research shows consumers often rely on instalment loans repeatedly, increasing default risk, and that two types of people make only minimum credit card payments: those who cannot afford more and those who do not understand the high interest cost. He recommended presenting the true cost of credit clearly, including the cost of missed payments, and doubling efforts to teach financial literacy just in time for when borrowing decisions are made.

Brian Dijkema testified that the introduction of online gambling, particularly sports betting, is a major contributor to household debt, with about one in three young adults gambling online and average monthly losses of $283 per account, far exceeding safe limits. He stated that those exceeding the 1% income threshold are significantly more likely to experience financial, relational, emotional and health harms, and that bankruptcy rates rose 25% to 30% after online betting was legalized in U.S. states. He recommended supporting Senator Marty Deacon’s bill to ban sports advertising, arguing that advertising normalizes gambling and turns sports events into addictive slot-machine-like experiences.

Grant Bazian testified that MNP trustees see Canadians relying on high-interest credit for essentials, with many within $200 of insolvency each month, and that housing is the largest driver of debt, leaving households with no margin for error. He noted that financial distress is also a mental health issue, with people often waiting too long to seek help, and that the insolvency system should be a last resort. Sheri Aberback offered four recommendations: increase public awareness of federally regulated debt relief options; strengthen consumer protections around high-interest credit; address the housing debt connection by improving supply and reducing construction barriers; and support practical financial education focused on real decisions like mortgage renewals and repayment strategies. She disagreed implicitly with the notion that one-time handouts are sufficient, emphasizing long-term education and structural fixes.

During questions, Bazian clarified that the “$200 from insolvency” statistic is a sentiment survey reflecting what people feel, not a precise calculation, and that younger generations are more affected due to mortgages, car loans and child care costs. He also stated that people are using credit for essentials like food and utilities, and that education is key to changing the cultural normalization of long-term debt. D’Astous added that financial literacy courses in Quebec have shown positive effects, and that just-in-time education is more effective than general lessons. Dijkema noted that in-game betting resembles slot machines, driving addiction, and that the state is a primary beneficiary of gambling revenue, which functions as a regressive tax on the vulnerable. No procedural debate, motions or votes occurred during the meeting.