Canadian Mortgage Arrears Double to 0.29 Percent in September
Canadian homeowners falling behind on mortgage payments doubled to 0.29 percent in September, the steepest rise among G7 nations.
The share of Canadian homeowners falling seriously behind on mortgage payments doubled from its 2022 low to 0.29 percent in September. According to data from Benchmark Canada, a project by the Macdonald-Laurier Institute, this represents the steepest rise in arrears among G7 nations, although Canada still maintains the second-lowest overall rate in that group.
Benjamin Tal of CIBC noted that banks have mitigated the damage by proactively extending repayment terms to borrowers. However, the rise in delinquencies is driven by homeowners renewing mortgages originally secured at low pandemic-era rates. Ron Butler of Butler Mortgage warned that some homeowners are using credit cards and personal lines of credit to avoid default.
Regional data from the Canadian Bankers Association indicates that Saskatchewan has the highest arrears rate at 0.46 percent, while Ontario has the highest total volume of delinquencies. Experts point to a weakening job market as a primary threat to housing stability, citing Statistics Canada reports of a 68,000-job drop in September.
