Canadians in a Sour Mood about 2026

It’s truly sad that an amazing country with so much potential is suffering in the throws of yet another recession, with a majority of its citizens expressing fear about the future.

Surveys from Abacus Data and MNP show Canadians are feeling gloomy. MNP with its just released survey finds Canadians believe their economy overall will worsen (59%) in 2026, and housing affordability will deteriorate (59%).

They found that 87% of Canadians are concerned about the state of housing today. Only four in ten believe the dream of homeownership is still alive. When you focus in on Toronto or Vancouver, the expectation of home ownership is likely much lower.

“Many Canadians believe that household finances will come under increasing pressure, fueling heightened anxiety about economic security in the year ahead,” says Grant Bazian, president of MNP LTD, the country’s largest insolvency firm. “Canadians expect most aspects of daily life to worsen rather than improve in 2026.”

Despite that pessimism, the desire to own a home remains strong as 65% of non-homeowners expressed a desire to buy someday, rising to 86% among those aged 18 to 29. Hope reigns eternal in Canada.

In fact, Canadians compare poorly when other nations are brought into the conversation. A comparison to Norway, similar size and geography is particularly embarrassing. Canada faces a threat in a breakup of the country with all provinces going their own way. This threat can easily be fired up with the failure of the US trade deal, and provincial embargos on interprovincial cooperation. So far, the media has painted the separation matter as a problem with Alberta’s leaders and Quebec. Alberta’s frustration and Ottawa’s treatment of the province will cause separatist sentiments to flare up beyond what Alberta’s premier can deal with.

The MNP poll wouldn’t allow Canadians to express what they really feel about Ottawa, trade deals, debt and the massive immigration program the Liberals have undertaken and continue to this day.

Worries about Financing and Poverty Rise

Nearly two-thirds of Canadians also express concerns about rising poverty and inequality (62%) as well as worsening government deficits and debt (66%). 41% report being $200 or less away from financial insolvency each month. Canadians report only having about $900 left at the end of the month, although that is still up $163 from the previous 3-month period.  Less than half of Canadians (47%) have 6 months of emergency savings available, leaving many households vulnerable to disaster.

“Even where Canadians see some improvement in their own debt situation, confidence about the year ahead remains fragile, particularly among those carrying high levels of debt,” says Bazian. “For these households, ongoing affordability challenges and borrowing costs leave little room for error as they head into 2026.”

Will Canadians Face up to it or Flee?

MNP categorized their response to these difficult financial, housing and employment situations into 2 responses: (1) fight and (2) flight.

Those who respond by (fighting) dealing proactively (59%) are characterized by:

• adjusting their budgets (43%)
• attempting to consolidate debt (12%)
• seeking advice from a financial professional (11%).

They could have added that fighting should also include acting to create political change. Canadians are aware of inflation, government debt, Liberal failure to strike a trade deal, Liberal policies that keep Canadian resources in the ground, and how painful excessive immigration and housing shortages are. Sounding out against the Liberal’s strategy is an appropriate and healthy response.

Carney’s visit to China this week may result in a significant loss of confidence in the economy, so these numbers here could worsen. Premier Doug Ford is already sounding out about the new deal with China. Importing more cheap China EVs might only hasten the death of the Ontario auto sector. Currently, AI and microchips all run out of the US. Being more isolated from the US carries big worries.

Those who evade or take a flight response (32%) typically:

• avoiding thinking about their financial responsibilities (12%)
• avoid financial discussions with family or professionals (15%)
• rely on credit to cover essential expenses (17%).
• feel financially frozen (15%), unsure where to begin when facing financial stress.

Of course, the under supplied Canadian housing market is often cited as a source of pain either through mortgage costs or rent prices. MNP’s drill down on the housing matter is questionable. As Canadians cite housing cost and supply as a key issue, they should be able to fully express themselves about it, and what the solution might be. But few anti-immigration sentiments are explored or ever published in the media.

TransUnion Canada reported hat total consumer debt increased to $2.6 trillion in the third quarter of 2025 driven primarily by an increase in mortgage balances.  Mortgage balances rose 4.1 per cent to $1.89 trillion year-over-year. Total non-mortgage debt increased 4.35% to reach $673 billion year-over-year. The average credit card balance per Canadian increased 1.9% year-over-year to $4,652.

Given some are using credit cards to pay rent and buy food, and those who own homes are facing mortgage refinancing at much higher rates, 2026 could end up being a record year for bankruptcies.

A very recent Angus Reid Institute survey (Nov–Dec 2025) shows:

• ~60% of Canadians say the cost of living is the top issue affecting them. Even though inflation has slowed, many still feel big price pressures on food and other essentials.
• Roughly one-third of Canadians say they are worse off financially than last year, and 25% expect to be even worse off next year.

A Money.ca survey found that 64% of Canadians cited the cost of living as their primary economic concern — more than jobs, taxes, or other financial issues.

A TD bank survey found that 49% say inflation/cost of living as a major financial challenge.

The fallout from the Trump tariffs for Canada as a whole still hasn’t registered. Imports are still occurring at a low tariff rate (USMCA compliance) if they comply.

Is the Federal Government Dealing with Canada’s Deteriorating Condition?

An Abacus study found 6 in 10 Canadians feel the Liberals are obsessing over President Trump and the tariffs rather than finding ways to improve the economy, housing market shortages, poor health care, and high inflation. Regardless of age, Canadians feel the Liberals are avoiding domestic issues.

Canadians are feeling the strain because nearly eight in ten Canadians (79%) cite rising costs, housing, and healthcare will hurt their families over the next two years compared to the U.S. tariffs or trade policies (21%).

They may believe the Liberals are doing politics and blaming Trump for the Canadian economy and housing situation rather than facing up to the real challenges.

With respect to the USMCA trade situation, only 38% believe Carney is likely to secure a fair trade deal with the U.S. under Trump, and 47% believe he’ll fail. Younger Canadians and Liberal voters tend to be more optimistic about a deal, while older Canadians and Conservatives are more skeptical.

The big question, one not discussed by the Canadian media, is whether a new government led by Pierre Poilievre would succeed in making a deal. Other polls suggest satisfaction and confidence in Mark Carney, and a dislike of Pierre Poilievre.

President Trump’s frequent comments about trade with Canada continue to be negative, peppered with “we don’t want Canadian products or need them.”  How anyone could believe the Liberals, who have held out, would resolve it and bring a return to freer trade is a head scratcher.

Fears and outlooks vary across the country, with big cities such as Vancouver and Toronto suffering from the highest negativity.

The poll insights are welcome, however, it could be Canadians as a whole still have stuck their head in the sand about the economic outlook as we enter 2026.

The feel good action that can make us all feel better is to elect a new government, a new deal with the Trump team, and a rejection of immigration for no purpose, and a strict policy on creating affordability for all Canadians. This is your country — you deserve to be respected.