Mortgage Delinquencies Are Rising: What Does This Mean?

After years of low mortgage default rates, Canada is now seeing a significant rise in mortgage delinquencies. This trend is important to watch if you own a home or plan to buy one.

The overall numbers are still low, but the change shows that economic pressures are affecting more Canadians. This is especially true for those with upcoming renewals or high household debt.

What’s Happening?

Equifax Canada reports that the national mortgage delinquency rate is now 0.20%. This is the highest rate since 2020. Lenders consider a mortgage “delinquent” when borrowers are 90 days or more overdue on payments. While 0.20% may seem small when presented as a percentage, 0.20% represents roughly 20,000 home owners!

This doesn’t mean a crisis, but it does show that more people feel the strain of higher monthly payments and rising living costs.

Why Are More Canadians Falling Behind?

Several factors are driving this trend:

• Higher Interest Rates: Many Canadians locked in low mortgage rates in 2020–2021. Now that those terms are ending, they’re seeing renewals at much higher rates, which can add hundreds to their monthly payments.
• Inflation & Everyday Expenses: Groceries, gas, and utilities cost more than they did a year or two ago. This leaves less room in household budgets.
• Rising Consumer Debt: Credit card balances and other loans are increasing. This extra debt can make it harder to pay mortgages.
• HELOC Pressure: Some homeowners use Home Equity Lines of Credit (HELOCs) to pay for expenses. However, rising interest rates have made them more costly.

Where Is This Happening?

The increase in delinquencies is appearing most in:

• Ontario and B.C. – where home prices (and mortgage sizes) are the highest.
• Younger homeowners and those with variable-rate mortgages are feeling it most.

Even in affordable areas like the Niagara region, homeowners with renewals may face a payment shock.

How Echo Mortgage Can Help

At Echo Mortgage, we work with you to stay ahead of these challenges and keep your home—and your finances—on solid ground.

Here’s how we help:

1. Renewal Planning

Is your mortgage up for renewal in the next 6–12 months? Now’s the time to talk. We’ll review your options and help you lock in the best possible rate or structure for your situation.

2. Budget-Friendly Refinancing

If your payments are getting too high, refinancing might help. It can let you extend your loan term or use your home equity at a better rate.

3. Clarity & Confidence

We explain complex financial terms, rate changes, and lender options in simple language. This way, you feel confident at every step.

4. A Plan That Works for You

Whether you are renewing or buying your first home, we create mortgage solutions for your real life. We focus on your needs, not just the lender’s checklist.

Final Thoughts

Rising delinquencies don’t have to be scary—but they are a reminder to be proactive, not reactive.

If you’re concerned about higher payments, a coming renewal, or qualifying for your next mortgage, reach out today. Echo Mortgage is here to help you with every change in the market. We offer advice that is honest, practical, and always in your best interest.

Let’s talk before the rates do.