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Concern Over Rising Interest Rates Nears Record High (58%, +5pts), Two in Five in the Two Provinces Brace for Increased Housing Costs (43%)
WINNIPEG, MB – April 14, 2025 – As Manitoba and Saskatchewan residents take steps to safeguard their finances amid ongoing economic uncertainty, about two-thirds say they have cut back on spending due to uncertainty (63%), and are delaying major purchases or investments (66%), according to the MNP Consumer Debt Index which is conducted quarterly by Ipsos.
A majority of Manitoba and Saskatchewan residents (75%) say the current economic uncertainty has made them more cautious about taking on new debt. More than half (53%) express heightened concern about their ability to pay off debt due to ongoing uncertainty. This concern extends to broader financial stability, with one-third worried about the possibility of someone in their household losing their job (35%, +7pts). More this quarter regret the amount of debt they have taken on (49%, +8pts), rising eight points. Yet at the same time, a higher proportion this quarter believes they will be able to cover living expenses in the next year without needing more credit (62%, +5pts).
“After the Bank of Canada’s two interest rate cuts this year, we’re observing a slight shift in how Manitoba and Saskatchewan residents are feeling about their financial outlook. Although economic uncertainties remain – especially around U.S. tariffs – the way these measures have been on-again, then off-again may be giving some households a bit of optimism,” explains Tanya Reynolds, a Licensed Insolvency Trustee with MNP LTD in Winnipeg. “That said, concerns about their debts still persist.”
Lower Interest Rates Offer Relief, but Many Remain Concerned
The proportion of Manitoba and Saskatchewan residents concerned about the impact of rising interest rates nears the highest level on record (58%, +5pts). Additionally, more Manitoba and Saskatchewan residents this quarter are worried about their ability to repay debts, even if rates decrease (42%, +6pts). However, thanks in part to the interest rate reductions this year, overall concerns about some impacts of interest rates have improved. More than a quarter (27%, +5pts) now feel better equipped to absorb a one-percentage-point rate increase, while the percentage (16%, -13pts) who feel less prepared has dropped by a significant 13 points – marking the largest improvement amongst all of the provinces. About two in five (38%, -9pts) continue to worry about falling into financial trouble if rates rise, and one-third (32%, unchanged) fear that rising rates could push them toward bankruptcy.
“Between lower interest rates and the financial adjustments many have already worked into their household budgets, some individuals seem to be feeling a bit of the weight lift off their shoulders,” says Reynolds.
Reflecting this shift toward financial caution, Manitoba and Saskatchewan residents are the most likely of all the provinces to rate their personal debt situation positively this quarter (45%, +1pt), while fewer rate it negatively (18%, -4pts).
“The shift from last quarter suggests more households are making deliberate efforts to cut back spending and reduce their reliance on credit as they try to get ahead of possible financial challenges,” says Reynolds.
She points to fewer Manitoba and Saskatchewan residents (41%, -8pts) reporting being just $200 or less away from financial insolvency, unable to meet their bills and debt obligations each month. This is due to fewer saying they are already insolvent (26%, -4pts).
“There are still four in ten Manitoba and Saskatchewan residents who report being close to insolvency, with a quarter saying they lack any financial cushion or flexibility in their monthly budgets. Without that safety net, they may be especially vulnerable to rising costs of living, housing expenses, or an unexpected disruption to their income,” says Reynolds.
Manitoba and Saskatchewan Residents Bracing for Increased Housing Costs
Two in five (43%) Manitoba and Saskatchewan residents say they are bracing for an increase in housing costs within the next year.
“Across Manitoba and Saskatchewan, many homeowners are approaching mortgage renewals that could come with significantly higher rates, and rents may climb in tandem. For financially vulnerable households, these growing housing costs, combined with the current economic uncertainty, could be difficult to absorb,” says Reynolds.
Reynolds says that there is help for those struggling to manage debt repayment, missing monthly payments or simply unable to make ends meet.
“When finances become overwhelming, Licensed Insolvency Trustees are available to provide impartial guidance – helping individuals navigate immediate pressures and plan for longer-term debt relief,” says Reynolds.
Licensed Insolvency Trustees play a vital role in helping Manitoba and Saskatchewan residents navigate financial challenges and make decisions about managing their debt. As the financial landscape remains unpredictable, seeking guidance from a Licensed Insolvency Trustee can provide individuals with a clear understanding of their debt-relief options, including debt consolidation, consumer proposals, and bankruptcy.
MNP’s extensive network of Licensed Insolvency Trustees provides free consultations across more than 200 offices nationwide, offering Canadians personalized, local support to help them explore debt relief options.
As a result of the uncertain economic environment, nearly half (49%) of Manitoba and Saskatchewan residents say they are relying more on financial advice and planning.
About MNP LTD
MNP LTD, a division of the national accounting firm MNP LLP, is the largest insolvency practice in Canada. For more than 50 years, our experienced team of Licensed Insolvency Trustees and advisors have been working with individuals to help them recover from times of financial distress and regain control of their finances. With more than 240 Canadian offices from coast-to-coast, MNP helps thousands of Canadians each year who are struggling with an overwhelming amount of debt. Visit MNPdebt.ca to contact a Licensed Insolvency Trustee or use our free Do it Yourself (DIY) debt assessment tools. For regular, bite-sized insights about debt and personal finances, subscribe to the MNP 3 Minute Debt Break Podcast.
About the MNP Consumer Debt Index
The MNP Consumer Debt Index measures Canadians’ attitudes toward their consumer debt and gauges their ability to pay their bills, endure unexpected expenses, and absorb interest-rate fluctuations without approaching insolvency. Conducted by Ipsos and updated quarterly, the Index is an industry-leading barometer of financial pressure or relief among Canadians.
Now in its 32nd wave, the Index has rebounded to 88 points, up nine points since last quarter. Visit MNPdebt.ca/CDI to learn more.
The data was compiled by Ipsos on behalf of MNP LTD between March 11 – 14, 2025. For this survey, a sample of 2,000 Canadians aged 18 years and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
National data is available upon request.
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