Equifax logos are shown on paper in Toronto on Oct.17, 2019. Equifax Canada says Ontario and British Columbia saw mortgage delinquency rates soar in the fourth quarter of 2023, surpassing pre-pandemic levels.THE CANADIAN PRESS/Christopher Katsarov
TORONTO – Equifax Canada says consumers in Ontario and British Columbia increasingly missed payments on mortgages and credit cards in the fourth quarter of 2023.
In Ontario, the mortgage delinquency rate was up 135.2 per cent compared with a year earlier, while B.C.’s rate rose by 62.2 per cent.
The agency says financially stressed homeowners in those provinces are also increasingly missing credit card payments, a trend primarily driven by homeowners who are 36 and younger.
Outside of B.C. and Ontario, where mortgage amounts tend to be lower, Equifax Canada says mortgage delinquency rates are rising at a slower pace and are still much lower than before the pandemic.
Mortgage delinquency rates across the country rose 52.3 per cent in the fourth quarter compared with a year earlier, while delinquency rates for non-mortgage debts that are more than 90 days overdue rose by 28.9 per cent.
Equifax Canada says as homeowners continue to renew their mortgages in a much higher interest rate environment, consumers who locked in historically low rates in 2020 may struggle to maintain their monthly payments.
This report by The Canadian Press was first published March 5, 2024.
