OTTAWA – Canada’s housing agency, Canada Mortgage and Housing Corp. (CMHC), has reported a notable decrease in the number of homeowners who are falling behind on their mortgage payments. This reduction marks the first decline in almost three years. However, the report highlights ongoing trends of increasing delinquencies in key regions, particularly in Ontario and British Columbia.

The national mortgage delinquency rate stood at 0.22 per cent in the second quarter of this year, a slight drop from 0.23 per cent recorded in the previous quarter. This positive trend at the national level is encouraging but contrasts with the situation in Ontario, where the delinquency rates are on an upward trajectory.

In particular, the percentage of households in Canada that are more than 90 days late on their mortgage payments has experienced a gradual increase in recent years. This figure rose from 0.14 per cent in 2022, driven largely by homeowners facing mortgage renewals at higher interest rates.

CMHC attributed the national decline in delinquencies to improved repayment trends in various regions, including Atlantic Canada, Quebec, and the Prairie provinces. In stark contrast, Ontario reported a significant increase in mortgage delinquencies, with rates in Toronto soaring by 60 per cent compared to the same period last year, reaching 0.24 per cent in the second quarter.

While borrowers have seen some relief from fluctuating interest rates, CMHC cautioned that many homeowners are still grappling with mortgage renewals at elevated rates. In the second half of this year, over 750,000 mortgage renewals are expected, and an additional 1.15 million are anticipated in 2026. This significant wave of mortgage renewals could pose challenges for many homeowners as they navigate higher costs.

The report also draws attention to the changes in mortgage rates over the past few years. The average rate on a five-year fixed-rate uninsured mortgage was 2.36 per cent in July 2020, illustrating a notable increase to 3.95 per cent reported this past July. This jump in rates underscores the financial pressures faced by many homeowners, particularly those renewing their mortgages under less favorable conditions.

Overall, while the report from CMHC highlights a slight decrease in the national mortgage delinquency rate, it simultaneously flags concerning trends in specific regions. The data suggests that homeowners in Ontario and British Columbia may face increasing financial pressure as they renew their mortgages at higher rates. With a substantial number of renewals on the horizon, the future will be pivotal for many Canadians navigating the housing market.