What to know
- Equifax Canada’s latest report found the country’s mortgage delinquency rate rose 32 per cent year-over-year in Q1 2026, with Ontario and B.C. seeing some of the sharpest increases.
- One expert says rising housing costs, grocery prices, and stagnant wages are leaving more Canadians unable to keep up with essential payments.
- Mortgage renewals at higher interest rates, combined with other variable-rate debt, are increasing financial pressure on households nationwide.
- The expert warns economic uncertainty tied to inflation, tariffs, and global conflict could continue pushing debt and insolvency rates higher.
A lot more Canadians are missing their mortgage payments now compared to last year, and one expert says the debt increase reveals deeper economic struggles, especially in certain markets across the country.
Equifax Canada’s 2026 Market Pulse report, published earlier this week, has revealed that the country’s overall mortgage delinquency rate reached 0.28 per cent in the first quarter of 2026, a 32 per cent increase from last year at this time.
The number is even more prominent in certain pockets of the country, including Ontario and British Columbia, where the rate jumped 52 per cent and 36 per cent, respectively.
Why are more Canadians missing mortgage payments?
While the rates remain below one per cent, Kathy Catsiliras, a consultant for analytical services at Equifax, told Now Toronto, they might indicate that Canadians are struggling to make ends meet.
“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, right? You might miss a credit card payment, you might miss something else, but you’re going to make sure you pay your mortgage,” she explained.
Considering the importance of these payments, the fact that the mortgage delinquency rates are increasing is alarming, because it might mean that Canadians are struggling to meet some of their most important payments.
Is the cost of living contributing to the increase?
According to Catsiliras, there could be many factors driving up delinquency rates, including the increasing cost of living.
Rising costs has long been a concern for many Canadians, with everyday needs, including housing and food taking a huge portion of residents’ paycheques. At the same time, wages are not keeping up with the rates.
Last year, Canada’s Food Price Report (CFPR) predicted that the average family of four will be spending $17,571.79 in groceries in 2026, which is nearly a $1,000 increase from the year before.
At the same time, Vividata’s Study of the Canadian Consumer Winter 2026, revealed earlier this year that 49 per cent of Canadians are living paycheque to paycheque, with no disposable income left at the end of the month.
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“Our salaries are not increasing at the same rate of the cost of living, and so that’s going to eat up any disposable income cash flow, and this is why we’re seeing a lot more Canadians and consumers, specifically homeowners, struggling to keep up,” Catsiliras said.
The fact that mortgage delinquency is increasing at an even higher rate in pricier markets such as Ontario and B.C. might mean that people living in certain areas of the country might be struggling even further.
On top of that, global economic uncertainty from the U.S.-imposed tariffs and the ongoing conflict between the U.S. and Iran is also leading to volatile prices and overall uncertainty across the country.
How are mortgage renewals affecting homeowners?
On top of increasing cost of living, mortgage payers are also dealing with varying interest rates.
As explained by Catsiliras, a lot of homeowners were up for mortgage renewals between last year and this year, which means that they are now subject to new interest rates. With these rates now up from the level they were at when these mortgages were last renewed, many might now be facing larger mortgage payments, which they are unable to keep up with.
In addition to mortgage, those who have other types of debt might also be dealing with varying interest rates, which could make their overall financial situation more difficult.
“If you’ve got…a line of credit, the interest rate is not fixed, it’s a variable, and that variable can change. So now, every month you might have to pay more towards interest costs than the actual amount that you owe,” she said.
In light of current economic uncertainty, she says it is also expected that the Bank of Canada will raise interest rates in order to bring down inflation. If that happens, more Canadians could be dealing with larger payments and more financial stress.
Could mortgage delinquency rates keep rising?
As mentioned, insolvency rates appear to be increasing, not only over the last quarter, but year-over-year, which Catsiliras says is “alarming.”
For now, there isn’t much indication that numbers will drastically change any time soon, especially as certain pockets, including markets such as Ontario and B.C., continue to drive the overall insolvency up.
“There’s too much debt; non-mortgage debt obviously is [also] a concern, and [we’re] watching it more closely because the numbers are alarming,” she added.
