New data from rental solutions platform SingleKey and credit reporting agency Equifax shows renter pressures are nearing crisis levels, with housing costs consuming nearly 40 per cent of income nationally and well above that threshold in Toronto.
SingleKey’s analysis highlights mounting affordability challenges:
- The national average rent is $2,200 per month. Highest in Vancouver ($3,095) and Toronto ($2,899). Lowest in Montreal ($1,520).
- Income pressures: Renters nationally spend 37.6 per cent of income on housing, nearing the “crisis” threshold of 40 per cent. Toronto renters already exceed it at 41.1 per cent.
- Average renter income: $112,450, ranging from $91,779 in Montreal to $148,579 in Toronto.
The figures show a two-tier market: gateway cities like Toronto and Vancouver with high-income, high-credit renters; more affordable regions such as Quebec and Atlantic Canada; and Calgary in the middle with moderate rents and incomes.
Credit realities for renters
Despite financial strain, renters maintain strong credit scores. The national average is 694, above the 680 mortgage threshold.
- Toronto (729) and Vancouver (730) lead.
- Alberta has the lowest provincial average (681).
- B.C. (704) and Ontario (700) top provincial rankings.
Equifax also found non-mortgage holders were nearly twice as likely to miss payments as homeowners, underscoring renters’ vulnerability.
Delinquency rates steady, but financial gap widens
According to a separate report from Equifax released this week, close to 1.4 million Canadians missed a credit payment in the second quarter of 2025 — 7,000 fewer than last quarter – but still 118,000 more than a year ago.
“While the overall delinquency rate appears to be leveling off, the underlying story is far more complex,” said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada. “We continue to see a growing divide between mortgage and non-mortgage consumers — and continued financial strain among younger Canadians, who are facing a slower job market and rising costs.”
In the second quarter, consumers without mortgages were nearly twice as likely to miss a credit payment as those with mortgages (one in 19 versus one in 37). The gap has widened since 2019, when non-mortgage holders’ delinquency rate was about 45 per cent higher; it now stands at more than 96 per cent.
Total consumer debt climbed to $2.58 trillion in Q2, up 3.1 per cent year-over-year. Average non-mortgage debt rose to $22,147 as households contend with rising costs for vehicles, groceries, mortgages and rent. Credit card spending has started to dip, with inflation-adjusted spending per consumer down 0.4 per cent to $2,100 in June. Mortgage holders cut back, while non-mortgage holders saw a slight increase.
Trends emerge within cities, provinces
Regional patterns highlight further pressures. Ontario’s non-mortgage delinquency rate rose to 1.75 per cent, well above the national average, with the steepest increases in Toronto, Hamilton and surrounding regions. Alberta’s delinquency rate reached 1.98 per cent, also above the national level, with Edmonton, Fort McMurray and Calgary all posting higher-than-average increases. Rising unemployment and interprovincial migration have added strain.
Mortgage delinquencies remain elevated in Ontario and B.C., though growth has slowed. Ontario’s 90-day mortgage delinquency rate rose to 0.27 per cent in Q2, while B.C.’s hit 0.19 per cent. Other regions remain below pre-pandemic levels.
Building financial resilience
The expanded SingleKey–Equifax partnership will allow rent payments to be factored into credit histories and offer newcomers a faster way to establish records in Canada.
In a joint statement, the companies said the tools are intended to help renters strengthen their credit profiles while giving landlords clearer insights into tenant applications.
