More Canadians missing mortgage payments as housing costs squeeze households
Canada's mortgage delinquency rate jumped 32% year-over-year in Q1 2026, with Ontario up 52%. Rising housing costs and stagnant wages are driving the trend.
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A growing number of Canadians are missing mortgage payments — a sign of deepening financial strain across the country.
Equifax Canada's latest report found the national mortgage delinquency rate reached 0.28 per cent in the first quarter of 2026, a 32 per cent increase from the same period last year. Ontario saw a sharper jump of 52 per cent, while British Columbia climbed 36 per cent.
While the overall rate remains below one per cent, the trend is alarming because mortgages are typically the last bill households skip, according to Kathy Catsiliras, a consultant for analytical services at Equifax. "Traditionally, when we look at payment hierarchy, anybody that has a mortgage, that is the fundamental item that you're going to pay every month," she explained. "The fact that mortgage delinquency rates are increasing is concerning because it might mean that Canadians are struggling to meet some of their most important payments."
Rising housing costs, grocery prices, and stagnant wages are squeezing household budgets. Mortgage renewals at higher interest rates, combined with other variable-rate debt, are intensifying financial pressure. The economic uncertainty tied to inflation and tariffs could push debt and insolvency rates even higher in months ahead.