Mortgage and consumer delinquencies rise sharply, intensifying affordability concerns
The financial pressure on Canadians is reaching historic highs, with residents in the Greater Toronto Area (GTA) dedicating more of their income to housing than almost any other major global city.
The affordability crisis, coupled with rising delinquencies and mounting personal debt, is putting unprecedented strain on households, especially in Ontario, according to new research by Oxford Economics.
This surge in housing expenses is contributing to a broader financial crunch across the province. Ontario is now leading the nation in overdue mortgage payments and defaults on other types of consumer debt.
Debt levels reach new highs
New data from Equifax shows a stark 17.06% year-over-year increase in Canadians missing or defaulting on payments in early 2025. That marks one of the most significant spikes in debt-related financial distress in the country’s recent history.
Ontario stands out not only for having the highest delinquency rate in mortgage payments over 90 days past due, but also for leading in defaults across credit cards, auto loans, and other non-mortgage debts. The province posted a 24% year-over-year increase in delinquencies in Q1 2025, the highest in the country.
Other provinces have also seen double-digit increases in payment failures: Alberta (up 15.93%), Quebec (up 13.95%), British Columbia (up 12.63%), and Western region (up 12.49%).
Meanwhile, Newfoundland and Manitoba saw relatively minor increases in delinquency rates, 0.48% and 2.04%, respectively.
Toronto tops the list for delinquencies
At the city level, Toronto saw a 24.28% year-over-year jump in delinquency rates, far outpacing other urban centers. For comparison, St. John’s experienced only a 1.19% increase.
When it comes to non-mortgage debt delinquencies in Q1 2025, Fort McMurray topped the list of Canadian cities at 2.56%, followed by Edmonton at 2.26%, and Toronto close behind at 2.17%. These figures highlight rising financial stress in key urban centers across the country.
On a provincial scale, Alberta reported the highest delinquency rate at 1.97%, followed by Saskatchewan (1.82%), New Brunswick (1.77%), and Ontario (1.72%).
Read next: Renters waiting for further price drops before entering housing market, report says
Canadians are carrying substantial non-mortgage debt loads. In Fort McMurray, the average consumer owes $37,269 in non-mortgage debt – the highest among cities studied. Toronto residents owe an average of $21,048, ranking seventh out of nine cities.
At the provincial level, Newfoundland tops the chart for personal non-mortgage debt with an average of $24,770 per person. Ontario ranks seventh among provinces with $22,543 in average non-mortgage debt per resident.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
