Canada Mortgage Delinquencies Triple Since 2023 And Reach Highest Since 2013

[Economy 52,842]

https://www.ctvnews.ca/toronto/article/ontario-mortgage-delinquencies-on-the-rise-and-could-climb-higher-still-experts-warn/

 

The flat economy combined with strain of higher rates on highly indebted economy may finally be manifesting itself in the credit market.

 

While Canadas housing bubble seems to have peaked in 2022 and for the last 3 years faced slow but consistent price drops and very slow sales, delinquencies at first remained mostly unchanhed

 

However they rose from 0.08% in 2023 to 0.14% in 2024 and now 0.23% the highest since 2013 at an era where stress test lending rules still did not exist

 

While the numbers are still too low to cause any systemic risk to the financial system, Canada has historically always had delinquencies near 0 due to strict lending standards which got even stricter in 2017 with stress test requirements

 

While this number may seem very low still by international standards, it is more about what it signifies as or suggests a growing number of people are stretched thin or can not make payments due to lost jobs

 

The technical definition of delinquent is usually also referring to 90 days late. So at least in theory, people who are behind at least a few payments and struggling would be way higher than the 0.23% figure.