OTTAWA - Canada's national housing agency, the Canada Mortgage and Housing Corporation (CMHC), has reported a decline in the number of homeowners falling behind on mortgage payments for the first time in three years. Despite this improvement on a national level, the data reveals an upward trend in delinquencies in specific regions, notably Ontario and British Columbia.

In the second quarter of the year, the national mortgage delinquency rate was recorded at 0.22%, a slight decrease from 0.23% in the first quarter. This marks a notable shift, although the percentage of households that are more than 90 days late on their mortgage payments has been gradually rising in recent years, climbing from 0.14% in 2022. This trend is largely attributed to many homeowners having to renew their mortgages at higher interest rates.

CMHC's report highlights that while the overall mortgage repayment trends have improved in regions such as Atlantic Canada, Quebec, and the Prairie provinces, Ontario has seen an alarming increase in delinquency rates. Specifically, delinquencies in Toronto surged by 60% from the previous year, reaching a rate of 0.24% in the second quarter.

Homeowners have experienced some relief as interest rates have begun to trend downwards, but CMHC cautions that there is still a significant wave of mortgage renewals occurring at elevated rates. Over 750,000 mortgage renewals are anticipated in the second half of the year alone, with an additional 1.15 million set for renewal in 2026.

The agency further elaborates on the shifts in interest rates, noting that the average rate for a five-year fixed-rate uninsured mortgage was 2.36% in July 2020, compared to a significantly higher 3.95% this past July. This stark increase in mortgage rates poses ongoing challenges for homeowners as they renegotiate their loan terms amid changing economic conditions.

CMHC's findings reflect the complex landscape of Canada's housing market, where economic pressures and interest rate fluctuations continue to impact homeowners' abilities to meet their mortgage obligations. While some regions show signs of recovery, others, particularly urban areas like Toronto, are grappling with rising delinquency rates that could have broader implications for the housing sector and overall economic stability.

As these trends evolve, the Canadian housing market remains under close scrutiny, highlighting the need for homeowners to stay informed and prepared for the financial implications of renewed mortgages in the coming years.