With mortgage rates still high and economic uncertainty in the air, you may be wondering how Canadians are managing their mortgages. Let’s take a deep dive into one important factor: mortgage arrears.

What Are Mortgage Arrears? Mortgage arrears refer to payments that are more than 90 days overdue. In Canada, the national arrears rate rose slightly to 0.20% in July 2024, reflecting 9,881 mortgages that are behind on payments. While this might seem concerning, it’s important to keep in mind that this rate is still historically low and significantly better than the pandemic high of 0.27% in 2020.

How Do We Compare Internationally? Canada’s arrears rate remains much lower than other countries, such as the U.S. and U.K., thanks in part to our country’s strong mortgage rules and lending practices. This stability is reassuring for both current and future homeowners looking to enter the market or renew their mortgages.

Regional Differences There are regional variations in arrears rates, with Saskatchewan having the highest arrears at 0.57%. Meanwhile, provinces like Ontario and British Columbia continue to boast lower rates at 0.16%. This reflects the economic resilience of these regions, especially in the face of rising mortgage costs​

 What Does This Mean for Homeowners? Despite high interest rates, most Canadian homeowners are keeping up with their mortgage payments, thanks in part to a stable job market and strong lending practices. This is great news for anyone considering buying a home or renewing a mortgage. It also highlights the importance of working with a knowledgeable mortgage broker to navigate the current market challenges and secure the best possible deal.

At a time when the mortgage landscape can seem daunting, it’s reassuring to know that the Canadian market is holding strong!

For more personalized advice on your mortgage needs, feel free to reach out. Let’s chat about how you can secure the most competitive rates and options in today’s market!