Canada’s residential mortgage debt has climbed to a record level, passing $2.4 trillion in January 2026 as higher borrowing costs, weaker household finances, and rising unemployment continue to pressure homeowners. According to CMHC, as reported by Postmedia, the total was up 4.8 percent from a year earlier, with the mortgage market showing early but still contained signs of stress.
The national mortgage delinquency rate remains low by historical standards, but it is slowly moving higher. CMHC said the share of mortgages behind by 90 days or more rose to 0.24 percent in the fourth quarter of 2025, up from 0.21 percent a year earlier. The increase marks a continued climb from the record low reached during the pandemic period in early 2021.
CMHC pointed to unemployment, overall economic weakness, higher mortgage renewal costs, and elevated household debt as key reasons behind the growing strain. Canada’s unemployment rate stood at 6.7 percent in March, while the household debt to disposable income ratio reached 173.3 percent in the final quarter of 2025. That means households owed about $1.73 for every dollar of disposable income.
Ontario is seeing some of the sharpest increases in mortgage stress. The province’s delinquency rate rose 35 percent year over year to 0.27 percent, with Toronto, Barrie, and Windsor each recording increases of 45 percent or more. CMHC said expensive housing markets are more vulnerable because many households are carrying larger mortgage balances.
Borrowing habits are also shifting. In February, variable rate mortgages became the most common option among borrowers at chartered banks, accounting for 42 percent of originated mortgages. CMHC said this reflects uncertainty in the economy, with many borrowers reluctant to lock into traditional five year mortgage terms.
Alternative lenders are also playing a growing role in the mortgage market. These lenders, which often serve borrowers who may not qualify through traditional banks, were the fastest growing category of mortgage lender. However, they also had the highest delinquency rate, with mortgages behind by 90 days or more reaching 1.96 percent in the third quarter of 2025.
There is some relief ahead, according to CMHC. The agency said concerns about the mortgage renewal cliff are beginning to ease, with the wave of renewals that peaked in 2025 expected to slow through 2026 and 2027. Still, many households remain exposed to higher payments as older, lower rate mortgages continue to renew into a more expensive borrowing environment.
The Big Six banks continue to hold the largest amount of outstanding mortgage debt, with balances rising 0.6 percent between the third quarter of 2024 and the same period in 2025. However, their share of newly originated mortgages fell 6.9 percent, suggesting more borrowers are looking beyond ma
