National mortgage arrears in Canada are rising

[White Wolf]

National mortgage arrears in Canada are rising, though they remain near historical lows relative to previous economic downturns.

According to recent data from the Canada Mortgage and Housing Corporation (CMHC), the national delinquency rate - eferring to payments missed for 90 days or more - rose by seven basis points between late 2023 and late 2025 to approximately 0.22%.

Key findings from the CMHC Residential Mortgage Industry Report and related updates include:

Regional Disparity: The increase is heavily concentrated in Toronto and Vancouver. In the Greater Toronto Area, the number of homeowners in arrears more than quadrupled between 2022 and late 2025.

Vulnerable Demographics: Pandemic-era first-time homebuyers are showing the highest signs of financial stress, as they often carry larger debt loads relative to income and have limited home equity.

Renewal Pressure: Roughly 2.2 million mortgages (about 45% of the national total) were scheduled for renewal in 2024 and 2025, many shifting from pandemic-era lows to significantly higher interest rates.

Mitigation Strategies: To manage higher monthly costs, many borrowers are extending their amortization periods at renewal, which lowers immediate payments but increases total interest costs over time.

Future Outlook: CMHC economists expect arrears to continue rising moderately through late 2026 as the full impact of high-interest renewals filters through the market.