A recent report reveals that Canadians are facing difficulties in meeting their mortgage obligations, particularly in the expensive housing markets of Ontario and British Columbia. According to Equifax Canada’s Market Pulse report released on Tuesday, mortgage delinquency balances increased by 32% nationwide in the first quarter compared to the same period last year, with Ontario and British Columbia experiencing the highest spikes at 52% and 36%, respectively.
The report emphasized the significant financial strain in these high-priced markets due to missed payments. For individuals who missed payments, their average delinquent non-mortgage balances rose to $54,000 in the quarter, marking a 4.6% increase from a year earlier. Additionally, the average balance of delinquent mortgages surged by 13.2% to $355,500.
Regarding homeowner insolvencies, there was an 11% rise compared to the fourth quarter of 2025, with insolvent mortgage holders carrying an average non-mortgage debt of $82,400. The majority of these individuals opted for consumer proposals over bankruptcy, accounting for over 90% of cases.
Despite the uptick in delinquency balances, instances of missed mortgage payments remain rare, with the 90-plus-day volume delinquency rate standing at 0.22%, lower than pre-pandemic levels. Rebecca Oakes, Equifax Canada’s vice president of advanced analytics, highlighted that while mortgage mispayments are minimal, they reflect underlying financial stress among consumers.
One of the contributing factors to homeowners struggling with payments, as noted by Oakes, is the impact of higher interest rates. The report indicated that the rise in interest rates has started to affect consumers with mortgages, especially as individuals renew their mortgages at higher rates, leading to increased missed payment levels.
Not all provinces are experiencing the same challenges as Ontario and British Columbia. For instance, Quebec and Saskatchewan have observed a decrease in missed payment levels, offering a contrasting picture.
Looking ahead, Oakes warned of a potential increase in delinquencies as mortgages come up for renewal at elevated rates. She expressed hope for stabilization, given the current status of interest rates, but cautioned that any future rate hikes could add further financial strain to the system.
The report highlighted that overall insolvency volumes have reached their highest point since 2009, indicating persistent systemic risks despite Canadians demonstrating financial discipline in navigating economic difficulties. Insolvency volumes for the first quarter of 2026 surged by 18.8% year-over-year.
Ron Butler, principal broker at Butler Mortgage and host of the Angry Mortgage podcast, attributed the rise in delinquencies to a “perfect storm” of factors, including declining home values, higher interest rates, and challenges in the job market. He explained how individuals who purchased homes in recent years in Ontario are now facing decreased property values, leading to financial pressure.
Butler emphasized that job losses and reduced earnings are exacerbating mortgage delinquencies, particularly for housing investors. He cited Brampton, Ont., as an example where high delinquency and foreclosure rates are prevalent, mainly due to a decline in international student populations, impacting property investors.
Despite the increase in delinquencies, Butler mentioned that financial institutions are not yet alarmed, as the current trend, although significant, remains manageable in terms of delinquency and default rates for banks.