What percentage of Canadians are falling behind on mortgage payments?
For most Canadians, monthly mortgage payments represent their single-largest recurring expense. Data from the Canadian Mortgage and Housing Corporation shows that the average monthly mortgage payment reached $1,839 in the third quarter of 2025, a 43.5% from the first quarter of 2019.
Across the country, the rising cost of living is straining Canadian bank accounts. For many, meeting their debt obligations, including mortgage payments, is becoming challenging. Nationally, the mortgage delinquency rate, the share of loans that are past due 90 days or more, has been rising annually over the past four years, increasing from 0.14% in Q3 of 2022 to 0.22% in Q3 of 2025. That represents an eight basis point, or 57% increase over a span of 36 months.
While the rate remains near historic lows, the magnitude of change within such a short time span is catching the attention of economists, lenders, and policymakers. Rapidly rising delinquencies often point to the start of a widening financial crisis that, if not addressed, could lead to broad-based economic challenges.
Mortgage delinquencies climb the most in Ontario and British Columbia
Mortgage delinquency rates vary greatly by region. Ontario has seen the steepest increases over the past four quarters, increasing by six basis points from 0.18% in Q3 of 2024 to 0.24%. Ontario was followed by British Columbia, which saw mortgage delinquency rates increase by three basis points during the same period, going from 0.16% to 0.19%. Nationally, the mortgage delinquency is highest in Saskatchewan (0.4%), and lowest in Quebec and Prince Edward Island (0.17%). Aside from Ontario and British Columbia, most provinces have seen mortgage delinquency rates hold steady over the past year.
Mortgage renewals could trigger more delinquencies
Many Canadians who purchased houses and condos during the pandemic, when rates were low, are up for mortgage renewals. It's estimated that about 1 million mortgages will be up for renewal in 2026 alone. CMHC projects that more Canadians will struggle to make their payments as they renew their mortgages, especially with rates higher than when the homes were initially purchased. An economist at CMHC estimates that interest rates will likely be three percentage points higher than when the mortgages were initially signed five years ago, and noted that they expect delinquencies and arrears to trend upwards.
