Canadian mortgage delinquencies are climbing at the fastest pace in a generation, and that’s only the visible part of the problem. Equifax data shows the rate continued its sharp ascent in Q2 2025, up from record lows barely two years ago. The trend offers only a glimpse of the broader credit stress now rapidly emerging across the mortgage market.
Canadian Mortgage Delinquency Rate Is Climbing Fast
Mortgage arrears are rising quickly across Canada’s mountain of debt. The delinquency rate climbed 1 basis point (+4.5%) to 0.23% in Q2 2025, and 2 basis points (+9.5%) from last year. Nearly half the annual increase occurred in the last quarter alone, showing the acceleration is recent—not a lingering issue quietly resolving itself.
The rate remains historically low, but the velocity of change tells the real story. Problems rarely appear overnight—they’re built through a steady erosion. A flat rate suggests lenders have contained the damage; a rising one means they’re still learning the extent of the problem. Known and understood risks have never broken a credit market—they fail when lenders and borrowers struggle to adapt.
Canadian Mortgage Delinquency Rate Makes Sharpest Climb In Recent History
Canadian mortgage delinquency rate on Equifax.
Source: Equifax; CMHC; Better Dwelling.
Canadian mortgage delinquency rates have seen a sharp increase over the past few years. Just over two years ago, in Q4 2022, the delinquency rate was 0.14%—a record low. Since then, it’s climbed 9 basis points (+64%), marking the sharpest climb in modern records. Early signs of stress are becoming apparent after years of easy credit.
Canadian Mortgage Problems Are Bigger Than You Think™
The reported delinquency rate is only a glimpse of a much larger problem. Equifax is a very large data set, but it’s far from comprehensive. The Big Six banks hold most of Canada’s mortgages, and all but one recently reported delinquency rates higher than Equifax’s average—a reporting gap likely to surface later.
Uncaptured stress is also rising. Private lending arrears aren’t typically included in Equifax’s figures, yet investors—who drove much of the recent delinquency growth—rely heavily on private credit for new construction. That’s a blind spot large enough to skew the national picture.
Power of Sale listings also hint at more hidden stress. Toronto has seen a recent surge in these lender-controlled listings, though none of the Big Six banks appear directly tied to them despite heavy exposure. Once again, the rate reveals little; it’s the trend that exposes the underlying strain in Canada’s credit system.