Many Ontario homeowners are falling behind on their mortgage payments even in the wake of a series of interest rate cuts that have lowered the cost of borrowing from record highs, a recent study suggests. In April, the central bank held its policy rate steady at 2.75 per cent, the first time it has left the key rate unchanged following seven consecutive cuts since June. However, in the last three months of 2024, experts at Equifax Canada say that more than 11,000 Ontario mortgages had recorded missed payments. That number is nearly three times higher than what was previously reported just two years ago. It’s also the sharpest spike in the country and as Toronto residents face some of the highest debt levels among major Canadian cities. While some residents benefit from comparatively lower borrowing costs, the report also highlights that many are still reeling from pandemic-borrowing and mortgage renewals at higher rates. “Mortgage holders will typically do everything they can to keep up with payments,” Rebecca Oakes, Equifax Canada’s VP of Advanced Analytics, said in a February report. “The fact that we’re seeing missed payments rise so sharply suggests deeper financial strain.” In heavily populated provinces such as Ontario and British Columbia, the report emphasizes that “financial pressures have intensified” citing the ongoing strain to keep up with the high cost of living and mortgage renewals with higher payments. At a closer glance in Toronto, the average non-mortgage debt now stands at just over $21,000, up 3.34 per cent from a year ago (2024 vs. 2023) “Mortgage renewals and refinancing accounted for over 50 per cent of new mortgage originations in Q4 2024,” officials said. “This reality is expected to affect around a million mortgages due for renewal in 2025, originating from the low-interest-rate environment of 2020.” Living with long-term debt For some homeowners, with high mortgage balances it may feel like they will never pay it off. Whether you’re locked into high monthly payments, juggling other debts, or stuck in a house you can’t afford to leave, CTV News Toronto wants to hear from you. Are you a homeowner in Toronto or elsewhere in Ontario who feels like you’re trapped in a “forever mortgage”? Have rising payments or debt made it harder to keep up, or forced you to make tough financial choices? Are you considering selling your residence to get out from under sky high mortgage payments? Share your story by emailing us at torontonews@bellmedia.ca with your name, general location, and phone number in case we want to follow up. Your comments may be used in a CTVNews.ca story.
