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Canada's national mortgage arrears rate remains low by historical standards — but stress is building fast in specific borrower segments. Data from the Bank of Canada and the Canadian Bankers Association.
of all Canadian mortgage accounts were 60+ days in arrears as of March 2026
— close to the 2018–19 average, but arrears among high loan-to-income borrowers have more than tripled over the same period.
Bank of Canada, Financial Stability Report 2026
The Bank of Canada tracks 60-plus-day arrears across three borrower groups, and the gap between them has widened sharply since 2018–19.
Share of mortgage accounts in arrears by 60 days or more. High LTI means a loan-to-income ratio above 450%. Bank of Canada, Financial Stability Report 2026, Chart 7 (source data: TransUnion and regulatory filings of Canadian banks).
The national arrears rate remains low by historical standards: 0.32% of Canadian mortgage accounts were 60+ days in arrears as of March 2026, only modestly above the 2018–19 average of 0.29%, per the Bank of Canada.
Stress is concentrated, not broad-based: borrowers with a loan-to-income ratio above 450% — about 17% of outstanding mortgage balances — have seen arrears more than triple since 2018–19, to 0.64%.
Toronto's 2022–23 vintage is the most stressed pocket: high-LTI borrowers in the Toronto census metropolitan area who took out their mortgage in 2022–23 — roughly 2% of outstanding balances — had arrears of 1.33% by March 2026, up from just 0.10% in 2018–19.
Bank-reported figures tell a similar story: the Canadian Bankers Association put the national 90-day-plus arrears rate at 0.23% in July 2025, noting more than 99% of bank mortgage holders remain current — among the lowest arrears rates of any advanced economy.
| Borrower segment | 2018–19 avg. | March 2025 | March 2026 |
|---|---|---|---|
| All mortgage holders in Canada | 0.29% | 0.27% | 0.32% |
| Mortgage holders with a high loan-to-income ratio (>450%) | 0.19% | 0.46% | 0.64% |
| Toronto-area high-LTI borrowers, 2022–23 originations | 0.10% | 0.78% | 1.33% |
Share of mortgage accounts in arrears by 60 days or more. Bank of Canada, Financial Stability Report 2026, Chart 7 (TransUnion and regulatory filings of Canadian banks).
national mortgage arrears rate (90+ days, chartered banks), July 2025
Canadian Bankers Association
of bank mortgage holders in Canada are not seriously delinquent
Canadian Bankers Association
share of outstanding mortgage balances held by high loan-to-income borrowers, where arrears have risen most
Bank of Canada
share of mortgage holders 60+ days late on any account, vs. 2.5% for borrowers without a mortgage
Bank of Canada
National arrears headlines mask where the real risk sits: high loan-to-income borrowers, concentrated in Toronto and Vancouver, who bought or refinanced near the 2022 peak. Brokers who proactively flag these files — before a renewal notice or a missed payment — can offer refinancing, amortization extensions, or lender switches while the borrower still qualifies, rather than after a file has already slipped.
Last updated August 1, 2026. Each figure carries its source; projections are labelled. Page reviewed on every major source release. Information only — not advice.
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