Quick answer
Yes — mortgage problems are getting worse in Ontario and Toronto, but the strain is concentrated, not widespread. As of Q1 2026, Ontario’s 90+ day mortgage delinquency rate rose about 52% year over year to roughly 0.36%, and Toronto reached about 0.38%, both above the national rate of about 0.24%. Brampton has Canada’s highest rate at about 0.64%. These levels are climbing quickly but remain low by historical standards, and the main driver is the 2026 renewal wave — roughly 1.15 million Canadian mortgages resetting from ultra-low rates. Homeowners who act 6–12 months before renewal typically have far more options than those who wait until a payment is missed.
Feeling like everyone’s mortgage is suddenly harder? Here’s what’s happening
If it feels like more people around you are quietly stressed about their mortgage, you are not imagining it. Across Toronto and Ontario, more homeowners are falling behind on payments than at any point in over a decade.
The full picture, though, is calmer than the headlines suggest. The number of homeowners seriously behind is rising, yet it remains low compared with most of the past 20 years. What is happening is real, local, and worth understanding, but it is not a collapse.
This guide explains what the latest figures from the Canada Mortgage and Housing Corporation (CMHC) and Equifax Canada actually say, who is feeling the pressure, and why. Then it walks through practical steps you can take, often well before any payment is at risk.
Quick start: pick your path
Renewing in the next year
Head to the step-by-step plan and start early, while your options are widest.
Already feeling stretched
The action steps and common mistakes sections matter most for you.
Just want the facts
The numbers and regional breakdown below answer your question directly.
Behind, or worried you might be
Speak with a licensed professional soon — options narrow once you are 90 days late.
Not sure where you fit? Understanding how a mortgage broker works is a good starting point, since a broker can review your whole situation at no cost to you.
What the latest numbers actually show
To make sense of the worry, it helps to know what is being measured. When CMHC or Equifax Canada report a delinquency rate, they mean the share of mortgages where payments are 90 or more days overdue. A single missed payment does not count; this measures households that have fallen seriously behind.
The national rate edged up to about 0.24% in late 2025, the highest reading since 2019, though still below the roughly 0.28% level seen before the pandemic. The story changes when you zoom into Ontario. According to Equifax Canada data for the first quarter of 2026, Ontario’s rate climbed about 52% from a year earlier to roughly 0.36%, while Toronto reached about 0.38%.
Put plainly, Ontario and Toronto have moved above the national average. You can also check current rate details to see how today’s borrowing costs compare. The key takeaway: rates are climbing quickly in percentage terms, but the absolute numbers are still small.
Where the strain is concentrated right now
Here is how the most recent picture compares across regions:
| Region / city | Delinquency rate (approx., Q1 2026) | Year-over-year change | Direction |
|---|---|---|---|
| Brampton | ~0.64% | +64% | Rising (highest in Canada) |
| Toronto | ~0.38% | +58% | Rising |
| Ontario (province) | ~0.36% | +52% | Rising |
| Canada (national) | ~0.24% | up modestly | Rising slowly |
| Quebec & Prairies | lower | roughly flat | Stable |
Figures based on Equifax Canada first-quarter 2026 data and are approximate, as of June 2026. Mortgage closings in Quebec are handled by a notary rather than a lawyer, and provincial processes can differ.
These numbers show why your experience may differ sharply from a friend’s in another province. A homeowner in Brampton or the Greater Toronto Area is in a very different position from one in Montreal or Regina. High home prices mean larger mortgages and more household debt, which leaves less cushion when payments rise.
Why more Ontario and Toronto homeowners are falling behind
The rise in missed payments is not random. It traces back to a handful of connected pressures, and the biggest is the mortgage renewal wave.
Most Canadian mortgages are not locked in for their full life. They come up for renewal every few years, and at renewal your interest rate resets to whatever is available then. Many homeowners locked in very low rates, some under 2%, during 2020 and 2021. As those terms end, they are renewing at rates closer to 4%, which can raise a monthly payment by hundreds of dollars.
Roughly 1.15 million Canadian mortgages are set to renew in 2026, after about 750,000 renewed in the second half of 2025. CMHC notes that arrears typically appear 6 to 12 months after a renewal, so the full effect may not show until late 2026.
Higher payments are not the only factor. Toronto-area homeowners also carry heavier debt because of high housing costs, home values have softened, and a weaker local job market has made some incomes less secure. For a fuller picture, see what to know about your mortgage renewal.
Your step-by-step plan if you’re worried about your mortgage
- 1Find your renewal date.Check your mortgage statement or contract, then mark the date six months before it. That is when your planning window opens.
- 2Run the real numbers.Estimate your new payment at today’s rates, not your old one. Knowing the figure removes much of the fear and shows how much room you have.
- 3Shop the whole market, not just your bank.Your current lender’s first offer is rarely its best. An independent broker can compare many lenders at once.
- 4Weigh your options.You might extend your amortization to lower payments, refinance, or consolidate higher-interest debt into your mortgage to free up monthly cash flow.
- 5Know what happens if you are turned down.If your bank declines your renewal, you still have paths forward. Read what happens if your renewal is denied so it does not catch you off guard.
The earlier you start, the more of these doors stay open. Waiting until a payment is late can close several of them, because lenders tighten quickly once an account is 90 days behind.
Mistakes that quietly make mortgage stress worse
- Waiting for the renewal letter. By the time it arrives, your planning window is nearly closed. Start months earlier.
- Signing the bank’s first renewal offer automatically. It is convenient, but it is often not the lowest rate you could get.
- Staying silent after missing a payment. Lenders have more flexibility before an account reaches 90 days overdue, so reaching out early matters.
- Ignoring your credit score. A lower score can shrink your options and raise your costs at renewal.
- Leaning on high-interest debt to cover the gap. The risks of leaning on a HELOC or credit cards are easy to underestimate.
- Assuming nothing can be done. Even in tight situations, options usually exist if you ask early.
Where an independent broker fits in
When your situation is straightforward, renewing is simple. When it is not, that is where an independent mortgage broker can help most.
A mortgage broker is a licensed professional who compares mortgages from many lenders on your behalf, rather than offering products from a single bank. Pegasus works with more than 50 lenders, including banks, credit unions, and trust companies, and the broker is paid by the lender, so the service is free to you.
This matters most for harder files: self-employed income, a credit history that needs explaining, or a renewal a bank has already declined. These are exactly the cases where shopping a single lender leaves options on the table. Razi Khan, Founder and Mortgage Broker at Pegasus, built the firm during the 2008 downturn to help people in precisely these moments.
Questions Ontario homeowners are asking
Are mortgage delinquencies really getting worse in Toronto and Ontario?
What is the current mortgage delinquency rate in Ontario and Toronto?
Why are so many Toronto homeowners falling behind on their mortgages?
Should I be worried about my mortgage renewal in 2026?
What actually happens if I miss a mortgage payment in Ontario?
Is Toronto’s mortgage situation a full-blown crisis, or is it being overhyped?
What can I do right now if I’m worried I won’t afford my renewal?
Can a mortgage broker really help if my bank has already said no?
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & references
- CMHC, Residential Mortgage Industry Report (Spring 2026). cmhc-schl.gc.ca
- CMHC, Renewal wave peaks but still dominates mortgage market (Q4 2025 data). cmhc-schl.gc.ca
- CMHC Observer, Mortgage renewal wave strains some regions and borrowers. cmhc-schl.gc.ca
- CMHC, National delinquency rate drops but continues to rise in Ontario and BC. cmhc-schl.gc.ca
- Equifax Canada, Market Pulse consumer credit trends (Q1 2026). equifax.ca