Mortgage delinquency balances increased 32% nationally in the first quarter versus the same period a year earlier, with Ontario and British Columbia showing the largest rises. Missed-payment cases involved higher delinquent non-mortgage balances, averaging $54,000, and delinquent mortgage balances averaging $355,500. Homeowner insolvencies increased 11% compared with the fourth quarter of 2025, and insolvent mortgage holders carried an average non-mortgage debt of $82,400. Over 90% of insolvent individuals selected consumer proposals rather than bankruptcy. Even with higher delinquency balances, 90-plus-day mortgage delinquency remained rare at 0.22%, below pre-pandemic levels. Higher interest rates contributed to payment difficulties as rates rose from pandemic lows.
"Mortgage delinquency balances were up 32 per cent nationally in the first quarter compared with the same period last year, with Ontario and British Columbia leading provinces at 52 per cent and 36 per cent, respectively. "This missed payment level highlights severe financial strain in high-priced markets," Equifax Canada said in a news release."
"For homeowners who have missed a payment, their average delinquent non-mortgage balances reached $54,000 in the quarter, a 4.6 per cent increase compared with a year ago. The average balance of their delinquent mortgages also climbed 13.2 per cent to $355,500. Homeowner insolvencies were up 11 per cent compared with the fourth quarter of 2025, according to the report, with insolvent mortgage holders carrying an average non-mortgage debt of $82,400."
"More than 90 per cent of those individuals chose consumer proposals over bankruptcy, the report said. Despite the increase in delinquency balances, missed mortgage payments are rare — the 90-plus-day volume delinquency rate sits at 0.22 per cent, which is below pre-pandemic levels. "Overall, when you look at mortgage mispayments, it is quite a small percentage, because consumers generally, they will try and protect their mortgage as long as possible," Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said in an interview."
""But the reason we do focus a lot on mortgages is because it does demonstrate what the underlying financial stress is as well." Higher interest rates play a role Higher interest rates are a reason homeowners are having trouble keeping up with payments, Oakes said. "During the pandemic, we saw interest rates were super low. As those interest rates started to rise, we started to see the impact a litt""
#canadian-mortgages #mortgage-delinquency #housing-affordability #interest-rates #insolvency-and-consumer-proposals
Read at www.cbc.ca
Unable to calculate read time
Collection
[
|
...
]