Ontario, B.C. mortgage stress rises as joint borrowing grows: Equifax

Canada’s mortgage market remained relatively stable overall in the second quarter, according to Equifax, but conditions in Ontario and British Columbia continue to stand apart from the national picture.

The credit bureau’s Q2 2026 Market Pulse presentation showed mortgage balances reaching $1.97 trillion, up 4% year over year and 1% from the previous quarter.

The average mortgage balance was $285,400, while 310,200 new mortgage accounts originated during the quarter at an average loan amount of $362,300.

Severe mortgage delinquencies, however, continued to rise. The 90-plus-day delinquency rate measured by mortgage balance increased to 0.30%, up 33.8% year over year and 7.2% quarter over quarter. Measured by account count, the rate was 0.23%, up 17.5% year over year and 4.2% quarter over quarter.

Ontario and B.C. remain outliers

Equifax said mortgage delinquencies remain relatively stable overall, but Ontario and B.C. continue to stand out, with both provinces showing a pronounced rise in severe delinquencies. The company pointed to several years of higher interest rates, renewal payment shocks and elevated living costs.

The pressure is also showing up in borrowers’ other credit obligations. Among Ontario mortgage holders, severe 90-plus-day non-mortgage delinquencies increased 27% year over year by balance and 24% by account count. 

Across the rest of Canada, the corresponding increases were 2% and 3%. Equifax’s broader Q2 data showed severe non-mortgage delinquencies among mortgage holders up 12.5% year over year nationally.

Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said mortgage holders, particularly in Ontario, remain a source of concern.

“They’re still experiencing rising missed payments, particularly on their non-mortgage credit obligations,” she noted.

Equifax also pointed to what it described as a payment hierarchy among homeowners. Borrowers tend to prioritize their mortgage, meaning financial stress can first show up through missed payments on auto loans or other consumer debt.

Joint mortgages increasingly important for first-time buyers

Equifax also found first-time buyers are increasingly relying on joint mortgages, particularly in higher-cost provinces.

Joint mortgage activity among first-time homebuyers has grown compared with the pre-COVID period and accounted for about 68% of FTHB mortgages in Q2 2026. In Ontario and B.C., 11.4% of first-time-buyer mortgages involved joint borrowers with an age gap of more than 20 years, compared with 8.4% in the rest of Canada.

Equifax said the data suggests greater reliance on parental or family support in higher-cost markets.

The broader first-time-buyer data also showed that sole-holder mortgages accounted for 27.3% of FTHB mortgages in Ontario and B.C., compared with 30.4% elsewhere. Joint mortgages with an age gap of five years or less represented 50.8% of mortgages in Ontario and B.C., versus 49.6% in the rest of Canada.

New originations remain concentrated among stronger borrowers

New mortgage originations also remained concentrated among borrowers with relatively strong credit profiles.

More than half of new mortgage originations went to consumers with credit scores above 750. Borrowers aged 36 to 45 accounted for 29% of originations, followed by those aged 46 to 55 at 26%. Consumers aged 35 and under accounted for 21%.

Quebec accounted for 35% of new originations in the quarter, followed by Ontario at 33%, B.C. at 12% and Alberta at 10%. The Prairies and Atlantic provinces each accounted for 5%.

The renewal cycle remains the key watchpoint

The Q2 data shows mortgage stress remains relatively contained nationally, even as pressures continue to build in Ontario, B.C. and among some borrower groups.

Equifax expects the mortgage renewal cycle to remain a key source of pressure, with payment shocks potentially contributing to borrower mobility and lender switching. The growing use of joint mortgages is also changing the profile of new borrowers, particularly in higher-cost markets.

Equifax recommended that lenders account for co-borrowing and multi-generational households in their risk models, while using trended credit data and engaging borrowers well ahead of mortgage maturity dates.

During the presentation, Kathy Catsiliras, Vice-President of Analytical Consulting at Equifax Canada, said regional differences require lenders to take a more tailored approach.

“One size fits all model does not work,” Catsiliras said. “When you have such big differences across the country, this is where it’s gonna be super critical to have really geospecific strategies, both at the adjudication and account management level, that allow you to evaluate and make decisions differently.”

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Last modified: September 21, 2026