Canadian Mortgage Arrears Rate Doubles Since 2022
As of September 2026, the national mortgage arrears rate reached 0.29 per cent.
Updated on Oct. 20, 2026 in Residential
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The share of Canadian mortgages in arrears has climbed to 0.29 per cent as of September 2026, effectively doubling from the 0.14 per cent rate recorded in August 2022. This shift reflects ongoing pressures on homeowners renewing loans originally secured at low 2021 interest rates.
Why it matters
Rising mortgage arrears highlight the financial strain on Canadian households, who now carry $1.76 in debt for every dollar of disposable income. Lenders are increasingly extending repayment terms to intervene before delinquencies become permanent.
Canadian mortgage arrears stand at 0.29 per cent, which is the second-lowest rate among G7 nations. By comparison, rates in the United Kingdom are 0.89 per cent, the United States is 1.43 per cent, and Italy reaches 2.10 per cent.
The details
Condo investors are facing a difficult period marked by lower rents and higher financing costs, while provinces like Saskatchewan and Ontario record rates of 0.46 per cent and 0.34 per cent respectively. To manage these pressures, lenders are actively intervening to prevent delinquencies from reaching the 60 to 90-day threshold.
Timeline
August 2022 saw the mortgage arrears rate at 0.14 per cent.
Ontario reported an arrears rate of 0.34 per cent in July 2026.
September 2026 marked the national arrears rate reaching 0.29 per cent.
Culture Shift
This rising rate marks a departure from the period of historically low defaults observed during the low-interest-rate environment of 2021. It reflects a shift toward more cautious consumer borrowing as households navigate higher financing costs relative to the historical average mortgage arrears rate in G7 nations.
Homeowners currently facing mortgage renewals may find that lenders are more willing to discuss extending repayment terms to manage monthly obligations. Those holding investment properties, particularly condos, should prepare for a potentially two-year period of sustained pressure on financing costs.
The takeaway
Homeowners should proactively communicate with lenders if they anticipate difficulty meeting payment obligations during the renewal process. Understanding that this trend is part of a broader adjustment to higher interest rates can help individuals better plan their long-term debt management.
Further reading
For more on property market trends, visit the Residential section.
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