Canadian banks aren’t just seeing delinquencies rise—they’re losing market share. Canadian Bankers Association (CBA) data shows the arrears rate was unchanged in March. Delinquent mortgages stalled at one of the highest levels in a decade, after doubling from 2022 lows. However, the big story last month was the drop in the number of mortgages held by banks, now approaching a 6-year low.
Canadian Mortgage Arrears Rate Remains At 9-Year High
The arrears rate of residential mortgages at Canadian banks.
Source: CBA; Better Dwelling.
The national arrears rate was largely unchanged at 0.28% in March, up 6 basis points (bps) from last year. The rate is the highest since February 2017, and double the pandemic lows last seen in mid-2022. That means arrears outpaced total mortgages by 18% over the past year, and have averaged roughly double the pace since 2022. It’s easy to mistake that monthly stall as a sign of stabilization, but a breakdown reveals that’s not the case.
Canadian Banks Haven’t Seen Delinquencies Like This In 10 Years
The total number of mortgages at least 90 days past due at Canadian banks.
Source: CBA; Better Dwelling.
Mortgages in arrears were virtually unchanged at 13.7k in March, 28 fewer than in February. Not 28 hundred or thousand, but literally 28 fewer delinquencies. The count has climbed 24.7% since last year, and has almost doubled from August 2022’s record lows. Since February 2026 had the most arrears since January 2014, March was just over two dozen arrears below a 12-year high. In any case, the decline is more a rounding error than a sign of market stabilization.
Canadian Banks Hold Fewest Mortgages Since 2020
The number of mortgages held by Canadian banks.
Source: CBA; Better Dwelling.
Elevated arrears aren’t the only problem banks are facing. They’re also holding fewer mortgages. Total mortgages fell 0.13% (-6.64k) to 4.93 million in March, down 1.07% (-53.34k) from last year. Since hitting a record high in June 2022, the total mortgage count has fallen 3.62% (-185.4k). Banks usually dominate the mortgage market, making this decline especially unusual. They’re now holding the fewest mortgages since October 2020, approaching a 6-year low.
At first glance, it looks like there may have been some signs of stabilization in the mortgage market. A dive into the data shows the arrears front hasn’t improved, while total mortgage volume is falling. Banks are holding fewer mortgages, amplifying the pain of each delinquency.
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