The number of homeowners in Ontario and British Columbia missing multiple mortgage payments is on the rise, driven by high-priced markets pushing some past a breaking point.
A new Equifax report shows the delinquency rate in Ontario hit 0.36% in the first quarter, a 52% year-over-year increase. In B.C., the rate jumped 36% to 0.25%.
Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said while the percentages are below 1%, they signal underlying financial stress. Homeowners often prioritize mortgage payments, but when they miss, other debts are also likely delinquent.
Cities in the Greater Toronto Area saw the biggest increases: Brampton up 64%, Toronto up 58%, and Hamilton up 61%.
Oakes warned that persistent high inflation and rising gas prices could further strain households, pushing more Canadians past a financial inflection point.
Insolvency volumes, including consumer proposals and bankruptcies, rose 18.8% year-over-year. Non-homeowners saw a modest 4.7% increase in insolvency, while homeowners filing for insolvency grew faster.
Non-mortgage debt for homeowners hit an average of $82,400, up 19% from two years ago. For those who missed mortgage payments, delinquent non-mortgage balances averaged $54,000, and delinquent mortgage balances climbed 13.2% to $355,500.