Mortgage Delinquencies Rising in Ontario
Mortgage Arrears 📈
According to Equifax Canada’s Q4 2024 Market Pulse Consumer Credit Trends Report, total consumer debt in Canada hit $2.56T at the end of 2024, a 4.6% increase from 2023.
Mortgage delinquencies have increased by over 50% compared to pre-pandemic numbers.
More than 11,000 mortgages in Ontario have reported missed payments in the fourth quarter of 2024, almost 3x more than in 2022.
Typically, homeowners will prioritize paying their mortgage over all other financial obligations such as credit card or vehicle loan payments; with mortgage delinquencies increasing, it may symbolize financial distress is growing throughout Canadian homes.
Surely, approximately 1,200,000 Canadians renewing their fixed-rate mortgages this year, in many cases, at higher interest rates and mortgage payments, are feeling varying degrees of strain.
In the absence of a rising real estate market, as seen in prior years, homeowners have relatively less accessible home equity to assist with consolidating debts, the cost of living and mortgage payment support.
What do you think this means for the housing market? Will more inventory hit the market? Are there enough buyers ready to purchase these homes, especially with expectations of further prime rate cuts in the near future? Share your thoughts in the comment section.
Your thoughts and comments are most welcome.
Yours respectfully,
Daniel Vyner
Principal Broker, DV Capital
t. 416-839-5874
tf. 1-866-839-5874
e. dvyner@dvcapitalcorp.com
Lic. 13186 | NS: 3000348 | 3000349