Canadian mortgage debt is surging, nearing $2 trillion in 2025 according to Equifax Canada. This comes as a significant wave of mortgage renewals places financial strain on homeowners, with millions facing increased payments.
Average new mortgage loan amounts have climbed 4.1 percent to $363,778. The burden is particularly acute for first-time buyers, who saw their average new loan size jump 5 percent to $441,301.
Many households are experiencing "payment shock" from renewed mortgages, leading some to switch lenders or miss payments. Rising missed payments are particularly noted on higher-value mortgages in Ontario, where post-renewal payments are proving unsustainable for some.
Simultaneously, the cost of starter homes has become a significant barrier. While incomes have risen, the price of new, lower-end homes has surged 265 percent since 2004, making them over twice as expensive relative to income. Experts suggest that without government intervention to reduce homebuilding costs and reform zoning laws, the affordability gap will persist for decades.