Equifax Canada’s recent report unveils alarming statistics regarding the increasing number of missed payments on mortgages and credit cards, particularly in Ontario and British Columbia.
Rising Delinquency Rates 
- Impact of Economic Factors: Higher interest rates and inflation weigh heavily on consumers, especially during mortgage renewals and in pricey housing markets.
- Regional Trends: Ontario and BC witness a significant surge in mortgage delinquency rates, rising by 135.2% and 62.2% respectively.
Financial Strain on Homeowners
- Pivotal Moment: Upcoming mortgage renewals present challenges for many homeowners, especially with the average post-renewal monthly mortgage payments rising significantly, surpassing $680 in BC and Ontario.
- Escalating Consumer Debt: Total consumer debt reaches $2.45 trillion, with non-mortgage debt up by 4.1%, driven by credit card debt.
Rising Consumer Insolvencies
- Worrisome Trend: Increased insolvencies, especially among mortgage holders filing for bankruptcy, with a notable rise in Ontario and BC.
- Financial Distress: January records a 23.5% increase in consumer insolvencies compared to the previous year, indicating growing financial strain.
Impact on Younger Demographics
- Struggling Homeowners: Young families and professionals face challenges in homeownership, with a surge in missed credit payments among those aged 36 and younger.
- Heightened Financial Pressure: Economic uncertainties exacerbate difficulties for younger individuals, hindering their path to homeownership
These findings underscore the pressing need to address economic challenges, particularly regarding housing affordability and financial stability. If you are currently struggling to make payments on your mortgage, don’t delay, contact us to see if we can find a mortgage solution for you.
