Key takeaways
- Equifax says mortgage delinquency balances rose 32% nationally in Q1 2026 compared with a year earlier.
- Ontario and B.C. are seeing sharper pressure, with delinquency balances up 52% and 36% year over year.
- The national 90+ day mortgage delinquency rate remains low in absolute terms, but it has been rising.
- Renewing homeowners should review options early, especially if monthly payments or other debts are already tight.
Mortgage stress is rising, even if most borrowers are still current
Canada’s mortgage market is showing clearer signs of financial strain. Equifax Canada’s Q1 2026 Market Pulse report says mortgage delinquency balances are up 32% nationally from a year earlier, with Ontario and British Columbia under particular pressure. Ontario’s delinquency balances rose 52% year over year, while B.C.’s rose 36%.
The size of the overdue balances is also growing. Equifax reports the average overdue mortgage balance rose 13.2% to about $355,500. Homeowners who were behind on mortgage payments also carried an average of $54,000 in non-mortgage debt, up 4.6% from last year. That matters because missed mortgage payments often do not happen in isolation — they can be connected to credit cards, lines of credit, car loans, and other monthly obligations.
Renewal shock is a major part of the story
CMHC’s Spring 2026 Residential Mortgage Industry Report points to renewals as a key pressure point. It notes that 2025 mortgage activity was dominated by renewals, and that many borrowers renewing in 2026 may face a similar interest-rate shock to the borrowers who renewed in 2025. In plain language: many homeowners who took on mortgages at lower rates are now adjusting to higher monthly payments.
This is happening while Canadian residential mortgage debt has reached a new high. CMHC reports that total residential mortgage debt exceeded $2.4 trillion in December 2025. Higher debt, higher renewal payments, and tighter household budgets can leave less room for surprises — like job changes, reduced income, repairs, or rising non-mortgage payments.
The national delinquency rate is still low — but the trend matters
It is important to keep the numbers in perspective. Equifax cites a national 90+ day mortgage delinquency rate of 0.22% for Q1 2026. CMHC noted 0.24% in Q4 2025, the highest since early 2021 but still below pre-pandemic levels. So this is not a broad-based collapse in mortgage repayment — but it is a meaningful warning sign.
Both Equifax and CMHC indicate that the stress is not evenly spread. It is more concentrated among higher-risk and more leveraged borrowers, including households carrying substantial non-mortgage debt and borrowers in markets where home prices are weaker. For those households, a renewal payment increase can reduce flexibility quickly.
What renewing homeowners can do now
If your mortgage renewal is coming up, the best move is to start early rather than wait for your lender’s renewal letter and accept the first offer. Renewal planning is no longer just about finding a rate — it is about understanding your full cash flow, your debts, your prepayment needs, and how much payment risk your household can comfortably handle.
- Review your renewal date, current balance, and expected payment range as early as possible.
- Add up non-mortgage debts and monthly payments so you can see your full household obligation picture.
- Avoid taking on new debt before renewal if your budget is already tight.
- Speak with a licensed mortgage advisor before signing a renewal, especially if your payment is rising or you have missed any payments.
Prospective buyers should also pay attention. Lenders are likely to keep scrutinizing debt loads and overall affordability carefully, especially for households with large existing obligations. Qualifying for a mortgage is one thing; having enough financial resilience after closing is just as important in this environment.
If you are renewing, buying, or worried about mortgage payments, a Finevo advisor can help you compare options across 40+ Canadian lenders and map out a plan before decisions become urgent. The right next step depends on your full picture, and getting advice early can give you more room to manoeuvre.
This article is general information about Canadian mortgages and is not financial advice. Rates, programs, and eligibility are subject to change and to lender and insurer qualification. Figures cited reflect market conditions at the time of writing. Speak with a licensed Finevo advisor for guidance specific to your situation.
