![\"mortgage-delinquencies-gs0205\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/86d379aa7a19b8dac5d5fdf1b46ee084.jpeg\")
The Canada Mortgage and Housing Corp. is warning that mortgage delinquencies are on the rise. (Credit: Getty Images) The Canada Mortgage and Housing Corp. is warning that mortgage delinquencies are on the rise. (Credit: Getty Images) <\/p>\n
Mortgage delinquencies<\/a> are on the rise in Canada, Canada Mortgage and Housing Corp.<\/a> (CMHC) said in a new report<\/a>, and they could get worse with one million mortgages up for renewal this year.<\/p>\n The Bank of Canada expects 60 per cent of mortgage holders<\/a> who are renewing this year will wind up paying more \u2014 six per cent on average \u2014 but the increases could be as much as 15 per cent to 20 per cent for a five-year fixed mortgage, which is the most popular type among Canadians.<\/p>\n \u201cThe national mortgage arrears rate \u2014 the share of mortgage consumers who have missed payments for 90 days or more \u2014 has been increasing,\u201d CMHC said in a report released on Thursday, citing a \u201csignificant\u201d increase of seven basis points from the third quarter of 2023 to the third quarter of 2025.<\/p>\n The national housing agency said the delinquency story is one of geography and demographics, with major cities such as Toronto<\/a> and Vancouver<\/a> recording the highest levels of delinquencies and those who purchased a home during the pandemic exhibiting the greatest signs of payment stress.<\/p>\n For example, mortgage delinquencies since 2022 have more than quadrupled in Toronto<\/a>. Alongside higher payments, homeowners in the city are grappling with greater levels of household debt<\/a> due to elevated real estate costs, while individual real estate investors face rising costs and falling rents. Falling home prices<\/a> and slowing sales<\/a> and a weak job market<\/a> are also hampering people\u2019s ability to cope with rising mortgage payments.<\/p>\n Fresh jobs<\/a> numbers out Friday pegged Ontario\u2019s unemployment rate at 7.3 per cent compared with the national average of 6.5 per cent as the province\u2019s manufacturing sector continues to take blows from tariffs.<\/p>\n Some of these stressors look like they\u2019re here to stay, at least for 2026. The Toronto Regional Real Estate Board<\/a> (TRREB) on Wednesday said it expects more home price declines in the first half of this year. It also said sales in December fell 20 per cent from a year ago.<\/p>\n \u201cDelinquency pressures in the GTA are expected to remain elevated throughout 2026,\u201d CMHC said.<\/p>\n Mortgage arrears are also rising steadily in Vancouver, though at a slower pace than in Toronto, due to rising costs and \u201cweaker resale conditions.\u201d<\/p>\n Other cities facing \u201cmoderate\u201d delinquency risk include Calgary<\/a> and, to a greater degree, Edmonton, where the job market is more \u201csensitive.\u201d<\/p>\n Homebuyers<\/a> who have high levels of housing debt to equity after purchasing during the pandemic are the most at-risk group.<\/p>\n \u201cWhen renewing their mortgages for the first time, they face a sharp increase in interest rates on already high debt levels, which places significant strain on their budgets,\u201d CMHC said.<\/p>\n Story Continues <\/p>\n Arrears are rising at the fastest pace among buyers who purchased between 2020 and 2021 and 2022 and 2024, according to Equifax Inc. data, proof of how vulnerable they are to rates that are now much higher than when they took out their mortgage.<\/p>\n Meanwhile, the costs of mortgage debt outpaced the increase in value of real estate in the third quarter, according to Statistics Canada\u2019s latest household wealth survey.<\/p>\n The CMHC also said the number of high-risk borrowers is growing, while debt is rising the fastest among those who are most likely to miss a mortgage payment.<\/p>\n At this point, delinquency levels are still historically low, but the housing agency is forecasting for them to rise to pre-pandemic levels.<\/p>\n It also said the trends \u201cindicate that more households may be becoming overstretched as they adjust to higher interest rates and the rising cost of living. This highlights growing financial vulnerability.\u201d<\/p>\n It\u2019s one of the most important \u2014 and sometimes confusing \u2014 savings decisions Canadians face, and the right answer depends on far more than a simple rule of thumb. This week, the Financial Post is running a series called TFSA vs. RRSP, breaking down the key questions in deciding between the two accounts, including mistakes to avoid and how to get the most bang for your buck. Check here every day for the latest.\u00a0<\/a><\/p>\n \u00a0Sign up here<\/a> to get Posthaste delivered straight to your inbox.<\/p>\n Prime Minister Mark Carney<\/a> says he\u2019s delaying the timeline for the electric vehicle transition<\/a> by about five years and unveiled several other auto policies Thursday, including the return of the $5,000 incentive for buying an EV.<\/p>\n The new automotive strategy cancelled a federal policy, colloquially known as the EV mandate, that would have required automakers to produce and sell only electric vehicles by 2035. Instead, the government plans to draft new rules by year-end that will set Canada on a path to achieve 75 per cent EV adoption by 2035 and 90 per cent by 2040 by focusing on greenhouse gas emission reductions so automakers can still produce internal combustion engine vehicles as long as their overall emissions fall. \u2014 Gabriel Friedman, Financial Post<\/p>\n Read the full story here.<\/a><\/p>\n Today\u2019s Data: Statistics Canada releases January job numbers. University of Michigan consumer sentiment index for January<\/p>\n Earnings: Canopy Growth Corp., Under Armour Inc., Philip Morris International Inc.<\/p>\n This 59-year-old widower has three children aged 14, 19 and 21 and a goal to help them financially for the future. He calculates that after paying off his mortgage and he will have about $1,000 available to set aside per child per month for at least a year. What he wants to know is whether directing the money towards a tax-free savings account and\/or stocks is a \u201cgood move.\u201d Read more here<\/a> to find out what the experts advise.<\/p>\n Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on\u00a0 one of the country\u2019s most important sectors. Sign up here.<\/a><\/p>\n Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com<\/a> with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/p>\n Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s Financial Post column <\/a>can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus, check out his mortgage rate page<\/a> for Canada\u2019s lowest national mortgage rates, updated daily.<\/p>\n Visit the Financial Post\u2019s YouTube channel<\/a> for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more.<\/p>\n Today\u2019s Posthaste was written by Gigi Suhanic<\/a>, with additional reporting from Financial Post staff, Canadian Press and Bloomberg.<\/p>\n Have a story idea, pitch, embargoed report or a suggestion for this newsletter? Email us at posthaste@postmedia.com<\/a>.<\/p>\n Bookmark our website and support our journalism: Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com<\/a>\u00a0to your bookmarks and sign up for our newsletters here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Canada Mortgage and Housing Corp. is warning that mortgage delinquencies are on the rise. (Credit: Getty Images)…\n","protected":false},"author":2,"featured_media":458600,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[52,45,49,48,11195,132635,46,187718,187719,187720,35681,132634,50,3302],"class_list":["post-458599","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-of-canada","tag-business","tag-ca","tag-canada","tag-cmhc","tag-delinquencies","tag-economy","tag-mortgage-arrears","tag-mortgage-consumers","tag-mortgage-holders","tag-mortgage-payment","tag-mortgage-payments","tag-statistics-canada","tag-toronto"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/458599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=458599"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/458599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/458600"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=458599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=458599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=458599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} <\/p>\n
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