Canada’s mortgage arrears near a decade high
The CBA frames the current situation as manageable. The association defines arrears as mortgage payments overdue by three or more months, and notes that more than 99% of bank mortgage holders in Canada remain in good standing. Canada’s arrears rate also continues to sit well below those of the United States and the United Kingdom.
The banking sector has maintained a consistent commitment to working with borrowers through difficulty, offering options that include amortization extensions, lump-sum payments, and rate conversions.
Victor Tran, a mortgage broker at Rates.ca, put the data in context earlier this year.
“At first glance, the increase sounds alarming, but the overall delinquency rate remains low,” Tran said.
“It reflects the strain higher rates are putting on monthly payments at renewal, especially for homeowners who bought during the pandemic, rather than widespread foreclosure risk.”
