Repaying Debt Top Financial Priority for Canadians in 2025: CIBC Poll

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a 20 dollar bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, on Sept. 4, 2024. The Canadian Press/Justin Tang

Repaying debt is the top financial priority for Canadians in 2025, with many also expressing concerns about inflation, rising living costs, and the possibility of a recession, a survey found.

The Ipsos poll, conducted for CIBC and released on Dec. 30, found that 17 percent of the 1,500 Canadians surveyed plan to focus on paying down debt, followed by 16 percent who aim to stay current with bill payments.

The survey also showed why many Canadians have accumulated more debt in recent months. The top reasons include the increased cost of living (44 percent), day-to-day expenses exceeding monthly income (29 percent), unexpected financial emergencies (21 percent), and loss of income (14 percent).

CIBC also noted that 54 percent of employed Canadians are concerned about job security in the current economic climate.

Inflation and Recession

The CIBC survey found that 66 percent of respondents cited inflation as their primary concern, despite a recent slowdown. Statistics Canada reported on Dec. 17 that the Consumer Price Index rose 1.9 percent year-over-year in November, slightly easing from the 2 percent increase in October.

The poll also found that 65 percent of respondents are worried about the possibility of a recession, and 28 percent are concerned about high interest rates.

“Financial priorities are shaped both by ambitions and by the economic environment—and we’re seeing Canadians adapt to the current environment by learning new strategies, such as creating a budget or reducing spending, to help them stay on track,” Carissa Lucreziano, vice-president of CIBC financial planning and advice, said in a press release.

Despite these challenges, CIBC said that most Canadians expressed optimism for the year ahead. A majority (59 percent) of respondents feel prepared to handle an unexpected financial event or hardship, while 53 percent believe their financial situation is secure enough to withstand a recession.

The poll also showed more than three-quarters (76 percent) are confident in their ability to meet their financial goals in 2025. Sixty-four percent are positive about their current financial situation, and only 28 percent have taken on additional debt over the past year.

Housing Crisis

In a separate Ipsos poll, also released on Dec. 30, a less optimistic view emerged, showing that 95 percent of Canadians believe the country is facing a housing crisis.

Of the 1,001 Canadians surveyed, 46 percent blamed the federal government for the housing crisis, while 26 percent and 8 percent attributed the problem to provincial and municipal governments, respectively.

In the 2024 Fall Economic Statement, Ottawa acknowledged that housing affordability in Canada is “at its most challenging in decades,” affecting both homebuyers and renters across the country.

However, the government noted that steps are being taken to address the housing crisis, including a reduction in the immigration target—from 500,000 to 395,000 permanent residents in 2025, with further reductions in the following two years—to ease demand.

The government also pointed to its September mortgage reforms, which expanded eligibility for 30-year amortizations to all first-time homebuyers and raised the insured mortgage cap from $1 million to $1.5 million to help Canadians with lower down payments qualify for mortgages.

Matthew Horwood contributed to this report.