Mortgage delinquencies are rising across Canada, but nowhere quite like Ontario. Canadian Bankers Association (CBA) data shows mortgage arrears continued to rise in November. Ontario has seen its rate more than quadruple in just over three years, hitting the highest level since 2012. 

Ontario Mortgage Delinquencies Soar To 13-Year High

Ontario mortgage arrears rate: Mortgages at least 90 days past due, as a share of total.

Source: CBA; Better Dwelling. 

Ontario mortgage delinquencies are climbing fast. The arrears rate hit 0.26% in November, rising 8 basis points within the past year to the highest level since mid-2012. To put it bluntly, mortgages at least 90 days past due climbed 20% faster than total mortgages held by CBA member banks in the past year.   

Even more concerning is that the sharp rise is building on a trend. The Ontario arrears rate fell to a record low of 0.06% during the pandemic, almost exclusively due to pandemic supports that allowed most borrowers to escape the arrears label. Since then, the rate has surged 20 basis points, more than quadrupling in just over three years. 

Canadian Banks Have Seen Ontario Mortgage Arrears Climb 4x

Ontario mortgage arrears: Mortgages at least 90 days past due.

Source: CBA; Better Dwelling.

This isn’t just rate distortion—arrears are rising aggressively in raw numbers too. Banks reported 5,622 Ontario mortgages in arrears in November, up 1.3% from the month before, and 45.2% higher than last year. It works out to a 350.8% jump from the record low, and the most since August 2011. 

The pain is just a little more intense for banks that are losing market share. Since hitting a record 2.2 million Ontario mortgages in December 2022, CBA members have seen their book shrink by 1.61% as of November 2025. The vast majority of the drop, more than three-quarters, occurred in just the past year. Ontario’s decline isn’t just outpacing the national trend, but it’s also accelerating. 

Most of the Canadian real estate slowdown has been an Ontario story, and delinquencies play a major role. Delinquencies are often mistaken for a measure of borrower health, but they’re actually a liquidity signal. Even in hot markets, households under stress can sell before hitting the 90-day arrears mark. 

It only becomes a problem once qualified buyers disappear. With Ontario home sales grinding to historic lows, especially in Greater Toronto, rising delinquencies are expected. Until the gap closes between seller expectations and buyer budgets, liquidity will likely remain tight. And that means persistent upward pressure on Ontario’s mortgage arrears rate. 

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