Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024

A house for sale sign is shown in front of a house in Oakville, Ont., west of Toronto, Sunday, Feb.5, 2023. THE CANADIAN PRESS/Richard Buchan

Ontario’s mortgage delinquency rate nearly doubled over the last year as higher borrowing costs continued to put some homeowners under strain, a new report suggests.

Equifax Canada’s credit report for the fourth quarter of 2024 found that Ontario’s mortgage delinquency rate – which measures the number of mortgages in arrears - rose 90.2 per cent compared to the same quarter in 2023, hitting a recent high of 0.22 per cent.

Ontario saw the biggest jump in its mortgage delinquency rates of any province, significantly outpacing British Columbia (up 37.7 per cent) and Quebec (up 41.2 per cent).

Equifax says that more than 11,000 Ontario mortgages recorded a missed payment in the final quarter of 2024, which was nearly three times the number recorded just two years ago (2022).

Many homeowners who were buying for the first time or renewing, may have been able to lock in a low rate pre-pandemic or in 2020. However, Equifax says that higher rates have already led to a higher average loan amount and balance on mortgage renewals in 2024, compared to 2023 and 2022. About a million mortgages up for renewal in 2025 are also expected to be impacted by increased interest rates.

“Mortgage holders will typically do everything they can to keep up with payments,” Rebecca Oakes, vice president of advanced analytics at Equifax Canada, said in a release accompanying the data. “The fact that we’re seeing missed payments rise so sharply suggests deeper financial strain. Depending on the type of credit, missed payments have increased from 10 to 80 per cent, compared to pre-pandemic levels.”

Nationwide, about a quarter of mortgage holders saw their monthly mortgage payment increase by over $150 at renewal in the fourth quarter of 2024, Equifax says. While Ontario may be faring poorer than other provinces, total Canadian consumer debt also increased compared to 2023, rising 4.6 per cent to $2.56 trillion. Credit card debt in particular climbed 7.8 per cent in 2024. Canadians are also seeking more non-bank auto loans, which increased 11.7 per cent year-over-year.

The data also suggests that Ontarians were also struggling with other forms of debt in the final months of 2024, with a 46.1 per cent increase on the 90-day delinquency rate on non-mortgage debt.

“In Toronto, 90+ day non mortgage delinquency rates hit 2.06 per cent, higher than most major cities, reflecting the region’s unique financial challenges,” the report states.

The data indicates more financial strain among Canadians and there may be more strain ahead if U.S. President Donald Trump follows through on a threat of slapping a 25 per cent tariff on most Canadian goods as soon as March. The data also emphasizes a financial divide. While some borrowers may be experiencing higher payments or more debt, some were able to use home equity lines of credit to stabilize their payments, Equifax says.