Equifax recently released some unsettling numbers underscoring the housing affordability and cost-of-living challenges in Canada.
The credit tracking firm says mortgage delinquency rates rose by more than 52% between the fourth quarter of 2022 and Q4 of 2023. It also says non-mortgage debts that are 90 days, or more, overdue climbed nearly 29% during the same period.
Those figures seem pretty alarming and they are worth noting because they suggest a troubling trend. But the actual amount of delinquency in Canada remains low: just 0.14% for mortgages at the end of 2023 (up from 0.09% in ’22) and 1.3% for non-mortgage loans (up from 1.0% a year earlier).
Ontario and British Columbia saw the biggest increases, with mortgage delinquencies up by 135% and 62% respectively. Financially stressed mortgage holders in those two provinces are increasing missing credit card payments as well. It is a particularly notable problem for younger homeowners; those under age 37.
The report says there has been a sharp increase in the number of mortgage holders who are filing for bankruptcy. Filings were up 23% nation-wide, led by a 76.5% spike in Ontario.
Equifax warns about the potential for even bigger numbers, as more than two million mortgages are coming up for renewal over the next two years, at significantly increased rates.
A separate report by TransUnion puts total consumer debt in Canada at $2.4 trillion in Q4 2023, up nearly 3.0% from a year earlier.