Mortgage delinquency rates in Ontario are higher than anywhere else in Canada

As residents throughout Ontario struggle to keep pace with the cost of living, new standards for mortgage delinquency have emerged. 

A report published by Equifax this week revealed that on a national level, a staggering number of households struggle to find a foothold when it comes to paying their bills, as credit card debt and mortgage delinquency are at an all-time high. 

Additional information indicates that while many in the country scramble to manage their mortgage payments — Ontario remains the weakest link. 

According to the report by Equifax, over 3,000 mortgages in Ontario are in a state of “severe delinquency.”

In total, the delinquent payments amount to a little over $1-billion balance, which, on paper, showcases a roughly 66 per cent increase compared to the standard in the province around this time last year. 

“Inflation is stabilizing and interest rates are starting to reduce, which is good news for many consumers. Unfortunately, rising unemployment has offset some of the positives and is driving increased financial stress,” said Rebecca Oakes, Vice President of Advanced Analytics at Equifax Canada in an official statement. 

As a byproduct of a hostile environment for homeowners, Equifax’s study indicated that, in tandem with delinquency rates, young would-be homeowners in Ontario are choosing to not leave the nest. 

“The economic conditions we’re seeing today may be leading many young people to stay at home longer,” said Oakes. “With fewer job opportunities, soaring rent prices, high housing prices, and the high cost of living, young Canadians are increasingly relying on the support of their parents and grandparents.”

According to supplemental data in the report, nearly one in three Canadian households — almost 30 per cent — includes adult children living with their parents. In Ontario, this trend is even more prevalent, as roughly 33 percent of provincial sustain multiple generations all in one home.

For more information on this report, visit Equifax’s official website.