Mortgage Market Overview

Interest Rate Trends

Canada’s mortgage landscape has been shaped by significant interest rate fluctuations in recent years. The Bank of Canada slashed its policy rate to a historic low of 0.25% in March 2020 to support the economy, then rapidly increased it to 5.0% by July 2023 – the fastest tightening on record (Bank of Canada Interest Rate 1935-2025 | WOWA.ca). This pushed up borrowing costs sharply: average five-year mortgage rates roughly doubled from the ~2.4% range in late 2021 to around 5.5–6% by 2023 (Bank of Canada Interest Rate 1935-2025 | WOWA.ca) (Canadian Banks to Withstand Higher Residential Mortgage Capital …). Such a steep rise, prompted by 30-year-high inflation, has made new mortgages and renewals far more expensive. As of early 2025, the Bank of Canada has begun slightly easing rates (policy rate at 3.00%) after inflation slowed (Bank of Canada Interest Rate 1935-2025 | WOWA.ca) (Bank of Canada Interest Rate 1935-2025 | WOWA.ca), but mortgage costs remain high by recent historical standards.

Mortgage Delinquency Rates

Despite higher interest costs, mortgage delinquency rates in Canada remain very low by international standards, with over 99% of borrowers up-to-date on payments ( Read the latest statistics on mortgages in arrears in Canada ). As of mid-2024, the national mortgage arrears rate was about 0.2% – a slight uptick from pandemic-era lows but still below pre-2020 levels (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC). Banks report that Canada’s arrears rate is at its lowest in decades and well below levels seen in the US or UK ( Read the latest statistics on mortgages in arrears in Canada ) ( Read the latest statistics on mortgages in arrears in Canada ). However, there are early signs of strain: Ontario’s mortgage delinquency rate nearly doubled year-over-year to 0.22% in late 2024 (after interest rates surged), marking a recent high in that province (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). Other regions have also seen increases – British Columbia’s arrears rate jumped ~38% and Quebec’s ~41% from 2023 to 2024 – though from very low bases (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). In raw numbers, more than 11,000 Ontario mortgages recorded a missed payment in Q4 2024, almost three times the number two years prior (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). These figures underscore that while delinquencies remain uncommon, higher borrowing costs are nudging some households into financial difficulty.

Mortgage Renewal Challenges

A major challenge looming over the market is the wave of mortgages up for renewal at much higher rates. After years of ultra-low interest rates, over 2.2 million Canadian homeowners will see their mortgages come due in 2025–2026 at rates far above what they originally locked in (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC). Many of these borrowers secured rates in the 1–2% range during 2020–21 and will face renewal rates in the 5–7% range, creating significant payment shock (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC). The Bank of Canada estimates about 60% of all mortgages will renew by the end of 2026, virtually all at higher rates than before (The impact of higher interest rates on mortgage payments – Bank of Canada). Already, roughly 25% of mortgage holders saw their monthly payments jump by over $150 upon renewal in late 2024 as pandemic-era mortgages reset (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). Lenders and regulators are bracing for this “renewal cliff,” as even well-qualified borrowers may struggle with the sudden increase in payments (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC) (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC). Consumers are trying to cope through strategies like extending amortization periods or tapping savings. Indeed, a subset of variable-rate mortgages with fixed payments have hit their trigger rate, causing unpaid interest to accumulate (“negative amortization”) – about a quarter of such loans hit this point by late 2023 (The impact of higher interest rates on mortgage payments – Bank of Canada) (The impact of higher interest rates on mortgage payments – Bank of Canada). These borrowers have kept monthly payments unchanged for now, but will face steep hikes at renewal to catch up on owed interest and return to the original amortization schedule (The impact of higher interest rates on mortgage payments – Bank of Canada). Overall, the payment increase upon renewal is expected to average ~30–40% for many households, and significantly more (50% or higher) for those who took on variable-rate mortgages at the bottom of the rate cycle (The impact of higher interest rates on mortgage payments – Bank of Canada) (The impact of higher interest rates on mortgage payments – Bank of Canada).

Housing Affordability and Consumer Debt

Housing affordability in Canada has deteriorated to its worst level on record in recent years. In late 2023, the cost of owning an average home required about 63% of a median household’s income – an all-time high (Home affordability improves, but still challenging for many Canadians: RBC report – Mortgage Rates & Mortgage Broker News in Canada). Major cities like Toronto saw ownership costs reach ~84% of median income, and Vancouver an astonishing ~102% (meaning a representative home cost more than the entire income of a median household) (Housing Affordability Reaches Worst-Ever Level In Canada) (Housing Affordability Reaches Worst-Ever Level In Canada). This represents a dramatic decline in affordability: for example, in 2019 nearly 60% of Canadian families could afford a typical condo, but by 2023 only 44.5% could, and just 25.7% of households had sufficient income to purchase an average single-family home (Housing Affordability Reaches Worst-Ever Level In Canada). The squeeze is due to the combo of rapid home price increases (especially during 2020–2022) and the recent spike in interest rates. There has been some relief since mid-2024 as prices cooled and incomes rose – by Q3 2024, RBC’s affordability measure improved slightly to 58.4% of income from the peak, thanks to modest price declines and incomes growing ~4.4% year-over-year (Home affordability improves, but still challenging for many Canadians: RBC report – Mortgage Rates & Mortgage Broker News in Canada) (Home affordability improves, but still challenging for many Canadians: RBC report – Mortgage Rates & Mortgage Broker News in Canada). Nonetheless, affordability remains near worst-ever levels in many markets (Home affordability improves, but still challenging for many Canadians: RBC report – Mortgage Rates & Mortgage Broker News in Canada), keeping home ownership out of reach for many Canadians.

Canadians have responded by taking on larger debts and longer amortizations. Household debt (including mortgages, credit cards, lines of credit, etc.) has swelled to about $2.56 trillion as of late 2024, up 4.6% from a year prior (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). Mortgage debt alone accounts for roughly $2.2 trillion of that total (as of mid-2024), having grown ~3.5% year-over-year despite slower housing activity (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC). With borrowing costs high, consumer credit balances are also rising – credit card debt jumped about 7.8% in 2024, and usage of non-bank loans (e.g. auto financing) is up as well (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). Importantly, many Canadians are stretching their finances to manage housing costs: a significant number of mortgage holders have tapped home equity lines of credit or other credit to stay afloat (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). While overall delinquency rates on consumer debt remain low, non-mortgage delinquencies have climbed (e.g. Toronto’s 90+ day non-mortgage delinquency hit 2.06% in late 2024, reflecting mounting financial stress) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). In short, heavy debt loads and high housing payments are straining household budgets, raising concerns about Canadians’ financial resilience.

Homeownership Challenges

First-Time Home Buyers

First-time buyers in Canada face an uphill battle. Sky-high home prices and stricter mortgage qualifications have made it increasingly difficult for young Canadians to enter the housing market. Accumulating a down payment is a major hurdle – with average home prices in the hundreds of thousands, the required 5–20% down payment can take years to save. Many first-time buyers now rely on family assistance: 27% of recent homebuyers received a financial gift to help fund their down payment, a share that jumps to 43% among buyers aged 18–24 (THE STATE OF HOMEBUYING IN CANADA 2023 CMHC Mortgage Consumer Survey). More than one-third of those who received gifted down payments said they could not have purchased a home otherwise (THE STATE OF HOMEBUYING IN CANADA 2023 CMHC Mortgage Consumer Survey). This highlights how parental support is increasingly crucial for young buyers. Even with a down payment, mortgage stress tests pose another challenge – all borrowers must prove they can afford payments at an interest rate ~2% above their actual rate (a minimum qualifying rate of 5.25% or higher) (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). With today’s contracts often around 5%, first-timers effectively must qualify at 7%+ interest, limiting how much they can borrow. In practice, many aspiring buyers find they cannot qualify for the home price they want, or face significantly higher monthly costs than a few years ago. As a result, the average age of first-time purchasers has been rising and more Canadians are delaying homeownership or remaining renters. Surveys show nearly half of young adults feel priced out of the market and worry that homeownership is increasingly out of reach (THE STATE OF HOMEBUYING IN CANADA 2023 CMHC Mortgage Consumer Survey) (THE STATE OF HOMEBUYING IN CANADA 2023 CMHC Mortgage Consumer Survey). Those who do buy often opt for smaller homes or condos, or move to cheaper regions, to make ownership feasible. Overall, first-time buyers are contending with the toughest conditions in decades: high prices, high rates, and lending rules that demand robust finances.

Existing Homeowners

Existing homeowners have benefited from past price gains, but many now face new pressures. For those who bought or last renewed their mortgage when rates were low, the prospect of renewal at today’s rates is a major concern (as discussed, millions will see payment spikes). Homeowners with variable-rate mortgages have already felt the impact of rising rates: those with adjustable payments saw their monthly payments jump roughly 70% on average from early 2022 to late 2023 as the prime rate climbed (The impact of higher interest rates on mortgage payments – Bank of Canada) (The impact of higher interest rates on mortgage payments – Bank of Canada). Meanwhile, a large cohort with variable rates but fixed monthly payments have quietly accumulated additional debt – many of these loans are now negatively amortizing, with balances growing because the set payment no longer covers interest at the current rate (The impact of higher interest rates on mortgage payments – Bank of Canada) (The impact of higher interest rates on mortgage payments – Bank of Canada). Banks have allowed these borrowers to temporarily extend their effective amortization periods well beyond the original 25–30 years to avoid immediate payment hikes. However, this is only a short-term fix; at renewal the payment will be recalculated to the normal amortization, resulting in a very sharp increase (often 50%+ higher payments) for those who had been on static payments (The impact of higher interest rates on mortgage payments – Bank of Canada). Even fixed-rate homeowners are not immune – anyone who locked in a 5-year mortgage in 2018–2021 at ~2–3% will face rates around 5–6% at renewal, translating to hundreds of dollars more per month in interest.

Beyond mortgages, many homeowners have high overall debt loads, often due to home equity lines of credit (HELOCs) or consumer loans taken on against rising home equity. The Bank of Canada has flagged that nearly 1 in 4 recent borrowers are “highly indebted,” owing more than 450% of their income ([PDF] The Real Story Behind Housing and Household Debt in Canada). These households are especially vulnerable to financial stress – their debt payments consume a large share of income, so rate increases or income loss can quickly make their loans unmanageable. Indeed, as rates climbed, banks reported an increase in homeowners reaching out for relief or restructuring. On a positive note, strong employment and home equity cushions have so far helped keep defaults low. Many owners have options to mitigate payment strain: for example, refinancing to a longer amortization, consolidating higher-interest debts into the mortgage, or even selling and downsizing if necessary. Banks have also been proactive in offering loan modifications – under a government-supported “Mortgage Charter,” lenders are expected to help households in hardship with measures like temporary payment deferrals or extending amortizations (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). Still, for heavily leveraged homeowners, the adjustment to higher interest rates is a significant source of anxiety. In late 2024, 7 in 10 mortgage holders reported feeling anxious about upcoming renewals and potential payment increases (according to consumer surveys). Existing homeowners with modest debt and stable fixed-rate loans are in a better position, but those who stretched their budgets in the low-rate era face a challenging period ahead.

Highly Indebted Borrowers

“Highly indebted” borrowers – often defined as those with a debt-to-income ratio above 450% – are a focal point of concern for regulators. During the housing boom of the pandemic, the share of new mortgages going to such borrowers reached record highs (near one-third of new loans at peak) ([PDF] The Real Story Behind Housing and Household Debt in Canada). Many Canadians maximized their borrowing capacity to afford homes, taking on mortgages several times their annual income. This group is particularly exposed to financial trouble from rising rates or any loss of income. Their mortgage payments plus other debt obligations tend to eat up a large portion of household income, leaving little room for error. Unsurprisingly, as rates have risen, it’s this segment showing the most strain – for example, a disproportionate share of early delinquencies are among borrowers with high debt service ratios. In Ontario, the spike in missed mortgage payments in 2024 was largely attributed to first-time buyers and others who bought at the peak with maximum debt (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). Recognizing the risk, regulators are taking action: the federal banking regulator (OSFI) announced it is capping the volume of new highly-leveraged mortgages that banks can issue. Starting in 2024–25, lenders will have limits on the proportion of their portfolio that can exceed a 4.5x loan-to-income ratio (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters) (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). This policy aims to prevent excessive high-DTI lending during future low-rate periods and gradually curb the overall risk level of mortgage books. Additionally, all borrowers (especially those with high debts) remain subject to stringent stress testing at origination to ensure they could handle further rate increases (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). In practice, many heavily indebted households are coping by cutting expenses and prioritizing debt repayment. As noted by Equifax Canada, “mortgage holders will typically do everything they can to keep up with payments” – often sacrificing other spending to do so (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). Nonetheless, this segment represents a vulnerability: if unemployment were to rise or house prices fall significantly, highly indebted homeowners could be the first domino in broader credit problems. Their fortunes will be an important barometer of the overall financial stability in the household sector.

Self-Employed Homeowners

Mortgage Qualification Difficulties

Self-employed individuals make up a substantial part of Canada’s workforce (about 2.6 million Canadians identified as self-employed in 2022) (A closer look at self-employed homebuyers – Mortgage Rates & Mortgage Broker News in Canada), and many aspire to homeownership. However, qualifying for a mortgage can be notably more difficult for self-employed borrowers compared to those with traditional salaried jobs. The primary challenge is proving stable, sufficient income. Lenders typically require at least two years of financial statements or tax Notices of Assessment to document a self-employed borrower’s income (Self-employed Mortgage Loan | National Bank) (Self-Employed Mortgage | What are the Requirements? | Ratehub.ca). Unlike a salaried employee who can show T4 slips or a steady paycheque, a business owner’s income may fluctuate year to year and often includes deductible expenses that reduce taxable income on paper. Banks focus on net income (after expenses) as reported to Canada Revenue Agency, which for many self-employed can be much lower than their gross revenue ([

<span class="hljs-symbol">Maximize</span> Tax <span class="hljs-keyword">Benefits: </span><span class="hljs-keyword">Self-Employed </span>Mortgage Qualification

](https://www.thrivemortgage.ca/maximize-tax-benefits-self-employed-borrower-mortgage-qualification#:~:text=Self,keeping%20and%20reporting)). This means someone might actually have healthy cash flows, but if they write off a lot of business expenses (to minimize taxes), their official income may appear too low to qualify for the mortgage they could realistically afford. The result is that many self-employed homebuyers cannot qualify for as large a mortgage through traditional underwriting and may be approved for a smaller loan than an equivalently earning salaried borrower.

In addition to income verification, lenders look at the stability and history of the business. Most mainstream lenders require that a self-employed person have at least two full years of successful self-employment (with supporting tax returns) before they will lend without additional backup (Self-employed Mortgage Loan | National Bank). If the business is newer or income is inconsistent, the borrower may be viewed as higher risk. Documentation demands are higher as well – aside from tax returns, lenders often ask for financial statements, business licenses, GST/HST returns, and contracts to gauge the viability of the enterprise (Self-employed Mortgage Loan | National Bank) (Self-Employed Mortgage Requirements). Meeting these requirements can be onerous and time-consuming. Some self-employed individuals also face the issue of credit score or debt load if they’ve taken business loans or personally guaranteed debts for their company, which can affect their credit profile.

Impact of Interest Rates and Lending Policies

Higher interest rates and stricter lending policies in recent years have had a pronounced effect on self-employed homeowners. When interest rates were ultra-low, many self-employed borrowers managed to get mortgages through alternative qualifications or by using floating-rate loans. Now, with rates much higher, debt service ratios have risen, making it harder to meet the required thresholds under the federal stress test. Even if a self-employed borrower’s income has stayed the same, the qualifying interest rate is ~7% or more, shrinking the mortgage amount they can get approval for. Those who already have mortgages, especially variable-rate ones, have seen their payments jump just like other Canadians. But self-employed individuals might have less cushion if their business income hasn’t kept pace or if expenses (like supplies, fuel, etc.) also climbed with inflation. This can create a double squeeze on cash flow – higher personal mortgage costs and higher business costs. During economic downturns or slower periods, self-employed folks don’t have the assurance of a fixed salary, so high fixed mortgage payments can be a real strain.

Many turn to alternative lenders or special programs catered to the self-employed. Mortgage insurers and some banks offer “stated income” products where reasonable income projections are accepted in lieu of just tax returns, but these often require excellent credit and a larger down payment (e.g. 10–20% or more). Such loans might come with a rate premium due to perceived risk. Indeed, self-employed borrowers often pay slightly higher interest rates or fees if they go through alternative lenders (though there’s no fixed rule to charge more, risk-based pricing often leads to it) (Self Employed Mortgage – Options & Qualifications – WOWA.ca). For example, a prime borrower might get 5.5%, whereas a self-employed borrower with non-traditional documentation might get 6.5% with a “B lender.” Additionally, lending policies were updated in recent years to be more accommodating in some ways: in 2018, CMHC and other insurers relaxed certain criteria (such as allowing more flexible proof of income, like showing 12 months of bank statements or evidence of retained earnings for business owners) to help self-employed applicants qualify. Despite these tweaks, many self-employed Canadians still feel at a disadvantage under the one-size-fits-all federal stress test rules.

Financial Strategies for Self-Employed Borrowers

Given the hurdles, self-employed homeowners and buyers have adopted various strategies to improve their mortgage prospects:

• Boosting Documented Income: Mortgage advisors often counsel self-employed clients to plan ahead by reporting higher income on their tax returns in the years leading up to a home purchase. This might mean taking fewer expense deductions or paying oneself a larger salary from the business, even if it results in higher taxes, in order to show the income needed to qualify. While it has a tax cost, this strategy can be crucial for meeting lenders’ debt service requirements ([ Maximize Tax Benefits: Self-Employed Mortgage Qualification ](https://www.thrivemortgage.ca/maximize-tax-benefits-self-employed-borrower-mortgage-qualification#:~:text=Self,keeping%20and%20reporting)). Accurate and meticulous record-keeping is also essential – keeping business and personal finances well-documented and separate can strengthen the mortgage application.
• Larger Down Payments: Since borrowing capacity is constrained by income, many self-employed buyers compensate by saving a bigger down payment to reduce the loan needed. Putting down 20% or more not only avoids the need for mortgage insurance, but also increases the chances of approval (since the loan-to-value is lower, lenders may be more flexible). Some even tap personal or family savings aggressively for this purpose.
• Using Alternative Lenders: If the big banks say no, the self-employed often turn to credit unions, trust companies, or private lenders. These lenders may use different qualification criteria – for example, some will consider bank statement cash flows or asset statements in lieu of high net income. The trade-off is higher interest rates or fees. However, this can be a bridge: the borrower might take a 1- or 2-year higher-rate mortgage, then refinance with a bank once they have the two years of solid financial statements required (Is 7.8% Normal for Self Employed? : r/MortgagesCanada – Reddit). The importance of a good mortgage broker comes in here, as brokers can connect self-employed clients with specialized lenders and products.
• Strengthening Credit and Finances: Self-employed individuals try to present the best overall financial picture. That includes maintaining a strong personal credit score, reducing other debts (like paying down credit cards, car loans), and maybe adding a co-signer or guarantor (such as a spouse with salaried income) to reassure lenders. They might also stagger major financial moves – for instance, avoid large business investments or new loans right before applying for a mortgage.
• Leveraging Business Structure: Some incorporate their businesses and pay themselves a stable salary or dividends, which can make income more predictable on paper. Others retain earnings in the corporation that can be paid out in a consistent manner. The key is to show a track record of income flow that a lender can rely on.

By employing these strategies, many self-employed Canadians do successfully obtain mortgages and purchase homes. It often requires more foresight and flexibility – for example, planning mortgage applications around their business cycles and tax strategy – but it’s a path that a growing segment of the population navigates. Lenders, for their part, increasingly recognize the diverse nature of self-employment (from gig workers to consultants to small business owners) and are slowly adapting their products. Nonetheless, the self-employed must remain proactive and resourceful to overcome the financing challenges inherent in not having a traditional paycheck.

Economic Impacts of Housing and Debt Trends

Effects on Consumer Spending and Financial Stability

The trends in the mortgage market and household debt have significant implications for Canada’s broader economy. One immediate impact of higher mortgage rates and payments is a squeeze on consumer spending. Housing costs (mortgage payments, property taxes, etc.) are typically a household’s largest expense. As thousands of Canadians renew at higher rates or allocate more income to servicing debt, they have less disposable income for other purchases. Indeed, the Bank of Canada has noted that households are cutting back on discretionary spending – for example, some reports indicate that a growing number of Canadians are forgoing purchases, even essentials, to prioritize their mortgage (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC) (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC). In 2023, growth in household consumption slowed markedly to about 1.7% (down from 5%+ in 2022), and on a per capita basis, real consumer spending actually declined in consecutive quarters (The Daily — Gross domestic product, income and expenditure, fourth quarter 2023). This suggests that high inflation and debt costs are outpacing income growth for many families, forcing belt-tightening that acts as a drag on economic growth. Sectors like retail, hospitality, and automotive may feel the pinch as Canadians redirect dollars to interest payments. Equifax data show rising delinquencies not just in mortgages but also in credit cards and auto loans, which is another sign that financial stress is spilling into other credit products (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). However, there is a silver lining: Canadians historically prioritize paying their mortgages above most other spending (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC), which helps keep housing-related arrears low (good for bank stability), even if it means curbing consumption elsewhere.

At a macro level, Canada’s economy has long been heavily influenced by housing activity. Residential investment (home construction, renovations, and transaction costs) reached nearly 10% of GDP at the peak of the housing boom in 2021 (The Daily — Gross domestic product, income and expenditure, fourth quarter 2023) – an unusually high share. This cooled to about 7.7% of GDP in 2023 as housing markets slowed (The Daily — Gross domestic product, income and expenditure, fourth quarter 2023), subtracting from economic growth. When housing sales and construction slow, it ripples through the economy, affecting industries from construction trades and real estate services to furniture and appliances. We saw this in 2022–2023 when higher interest rates caused home sales to drop: housing investment fell in six out of seven quarters, and new construction declined over 10% annually (The Daily — Gross domestic product, income and expenditure, fourth quarter 2023). Now, with early signs of housing stabilizing (and interest rates possibly past their peak), housing may cease to be a drag on growth. But the concern is that the weight of consumer debt could act as a brake on Canada’s economic momentum for some time. Highly indebted households are more sensitive to economic shocks – if unemployment were to rise, they would likely cut spending drastically to avoid default. The Bank of Canada consistently cites elevated household debt as a key vulnerability for financial stability. A widespread inability of households to meet debt payments would put strain on banks and could lead to a broader credit crunch. Fortunately, as of late 2024, banks have increased loan-loss provisions proactively (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC) and maintain strong capital, and there is no sign of a housing crash. The soft landing scenario is that households gradually adapt to higher rates, and debt levels relative to income start to come down (helped by wage growth and inflation reducing the real debt burden). This would be constructive for long-term economic health, even if the transition period dampens consumer-led growth.

In summary, Canada’s economy is feeling the effects of the mortgage and debt trends through moderated consumer spending, shifts in investment, and heightened sensitivity to financial shocks. Policymakers are watching closely: if mortgage delinquencies or debt defaults were to escalate, it could force interventions given the systemic importance of housing. Conversely, measures that restore housing affordability and keep debt burdens manageable (like income growth, rate relief, or targeted policies) will support a more resilient economy.

Housing Market Influence on the Canadian Economy

It’s worth noting the dual nature of housing’s impact on the economy: it can be a growth engine, but also a source of risk. During the pandemic recovery, housing market activity (soaring prices and sales) contributed significantly to GDP growth and boosted industries like construction and real estate. That created jobs and wealth, leading to positive “wealth effects” – homeowners felt richer and spent more. However, this came at the cost of Canadians piling on debt and pricing newcomers out, which are now the challenges to be managed. The current environment – with housing cooling and debt servicing rising – has a more mixed economic impact:

• Regional effects: Regions that experienced the biggest housing booms (Ontario, B.C.) are now seeing slower growth as housing cools, whereas some regions (Prairies, Atlantic Canada) that had milder price increases might be less affected or even still buoyed by interprovincial migration and relative affordability. For instance, smaller cities that attracted remote workers during the pandemic have enjoyed population growth and still-active housing markets, supporting local economies. On the other hand, major urban markets like Toronto and Vancouver, where housing costs are highest, are likely to see more consumer spending constrained by debt. This can lead to regional divergence in economic performance.
• Banking and credit: The stability of the mortgage market (low defaults) means banks remain healthy and able to lend, which is good for the economy. Canada’s banking system, cushioned by strict underwriting and insurance for high-ratio loans, has shown resilience. Major banks have set aside increased reserves for potential loan losses just in case (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC), but so far credit losses are very low. If this continues, banks can keep credit flowing to businesses and consumers. The risk scenario would be if interest rates stayed very high or unemployment spiked, leading to a wave of forced home sales – that could hurt housing prices and consumer confidence. Right now, unemployment is low and there’s a housing supply-demand imbalance that supports prices, which together reduce the likelihood of a deep housing-led recession.
• Long-term productivity: Some economists worry that Canada’s heavy focus on housing has diverted resources from other productive investments. If Canadians are dedicating a large share of income to mortgages, that’s less available for investments in education, entrepreneurship, or other consumption that drives industry growth. Also, high housing costs in big cities could deter labor mobility or make it harder for businesses to attract talent (due to cost of living). The federal government’s push to build more housing aims to ease this constraint in the long run, which could improve economic efficiency.

In conclusion, the mortgage and homeownership trends act as both a barometer and an influence on Canada’s economic health. Policymakers (at the Bank of Canada, Ministry of Finance, and regulators) are attempting to strike a balance where inflation is tamed and debt risks managed without causing a hard landing in the housing sector. The outcome will significantly shape Canada’s economic trajectory in the coming years.

Government Policies and Regulatory Changes

Recent Measures Supporting Mortgages and Homeownership

The Canadian government and regulators have introduced several measures in the past couple of years to address housing affordability and mortgage stress. Notably, in September 2024 the federal government announced the “boldest mortgage reforms in decades” aimed at helping buyers and easing mortgage costs (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). Key initiatives include:

• Extended Amortizations for Insured Mortgages: First-time homebuyers (and buyers of newly built homes) are now allowed to take 30-year amortization periods on insured mortgages (up from the standard 25-year) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). This policy, effective August 1, 2024 for new-build first-time buyers and expanded to all first-timers and new-build purchasers by Dec 15, 2024, is designed to lower the monthly payment burden, making it easier to qualify and budget (at the expense of paying more interest over time). By extending amortizations, the government hopes to give especially younger buyers some breathing room and encourage the construction of new homes (since the measure particularly targets new builds) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca).
• Higher Home Price Cap for Insured Loans: The maximum property value eligible for a CMHC-insured mortgage was raised from $1 million to $1.5 million, effective Dec 15, 2024 (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). This reflects the reality that in cities like Toronto or Vancouver, even starter homes often exceed $1 million. By increasing the cap, the government enables more buyers in high-priced markets to access mortgages with as low as 5-10% down (which require insurance). This change (the first adjustment since 2012) is aimed at helping middle-class buyers who otherwise might be shut out for lack of a 20% down payment on a $1.2M home.
• Stress Test Relief at Renewal (“Mortgage Charter”): As part of a new Canadian Mortgage Charter unveiled in Budget 2024, insured mortgage holders can now switch lenders at renewal without re-qualifying under the stress test (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). Previously, even switching to a new lender for a better rate triggered a new affordability test, which trapped some borrowers with their current lender. Removing this requirement for renewals improves competition and ensures borrowers aren’t penalized by the stress test when they already have a track record of payment. The Mortgage Charter also sets expectations for banks to offer tailored relief to any borrower facing hardship – for example, by adjusting payment schedules or extending amortization temporarily (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). Essentially, it’s a consumer-friendly framework to make sure banks work with struggling homeowners to avoid default if possible.
• Tax-Free First Home Savings Account (FHSA): In 2023, the government launched the FHSA, a new registered account that allows prospective first-time buyers to save up to $40,000 (up to $8k per year) tax-free towards a home purchase (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). Contributions are tax-deductible (like an RRSP) and withdrawals (including investment growth) are tax-free if used for a home, combining the benefits of RRSP and TFSA. This is meant to help young Canadians accelerate their down payment savings. Additionally, the Home Buyers’ Plan (RRSP withdrawal program) limit was increased from $35k to $60k per person in Budget 2024 (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca), allowing more use of RRSP funds for buying a home. These tools address the savings side of the affordability equation.
• Housing Supply and Affordability Programs: The federal and provincial governments have rolled out numerous programs to boost housing supply and reduce speculation. While not directly mortgages, they impact homeownership. For instance, the Housing Accelerator Fund provides incentives to municipalities to increase housing construction. Meanwhile, to curb demand from non-residents, a Prohibition on Foreign Home Purchases was enacted, originally a 2-year ban from Jan 2023 to Jan 2025 (Prohibition on the Purchase of Residential Property by Non … – CMHC). This ban was later extended for an additional two years to 2027 (Government announces two-year extension to ban on foreign …), continuing to bar non-Canadians (with some exceptions) from buying residential property. Similarly, a 1% annual federal tax on underused/vacant foreign-owned homes (the Underused Housing Tax) took effect to discourage empty homes in tight markets.
• Provincial and Municipal Actions: On the sub-national level, Ontario and B.C. have maintained or expanded foreign buyer taxes (15-20% in some regions) and implemented vacancy taxes (e.g., Vancouver’s Empty Homes Tax, Toronto’s Vacant Home Tax) to increase supply or fund affordable housing. Some provinces have also offered first-time buyer rebates on land transfer taxes or experimented with down payment assistance loans. These all contribute to the policy landscape affecting buyers.

Potential and Ongoing Policy Changes

Looking ahead, regulators continue to monitor and adjust policies in response to market conditions. The Office of the Superintendent of Financial Institutions (OSFI) – Canada’s banking regulator – is particularly focused on mortgage risk. In early 2023, OSFI launched consultations on debt serviceability restrictions beyond the existing stress test. By March 2024, it announced the aforementioned limits on highly leveraged loans for banks, effectively setting a cap on the proportion of new mortgages with loan-to-income above 4.5 (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). This is set to take effect in 2025 and will not apply to insured mortgages (which are already subject to other rules) (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). OSFI has indicated this approach allows banks to continue competing, but ensures none load up excessively on risky loans (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). In addition, OSFI has adjusted capital requirements so that lenders hold more capital for certain mortgage exposures – for example, loans with longer amortizations or those in negative amortization now carry higher capital charges, which discourages banks from letting too many mortgages extend far beyond 30 years (Canadian banks see dip in 30 year-plus mortgages, but risks remain).

The mortgage stress test itself (the minimum qualifying rate) is under periodic review. As of 2023, the rule remains that borrowers must qualify at the higher of 5.25% or contract rate + 2% (Canada regulator to cap number of mortgages to highly indebted borrowers | Reuters). If interest rates decline significantly, there could be calls to recalibrate this floor. Conversely, if housing markets heat up again, OSFI could tighten the test or other underwriting criteria. Thus far, policymakers have resisted loosening the stress test despite industry lobbying, prioritizing prudence given high household debt.

On the political front, housing affordability remains a hot issue. We may see additional government interventions: proposals floated include expanding rent-to-own programs, temporarily waiving GST/HST on new rental developments (already introduced for new apartment builds in 2023), and even discussions about collaborating with provinces to remove zoning hurdles that limit housing supply. A Home Buyers’ Bill of Rights has been promised, which could ban blind bidding in real estate transactions and ensure conditions for home inspections – these measures aim to protect buyers in hot markets and were in development as of 2024 (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca). Also under consideration are ways to help the most stretched mortgage holders: for instance, tweaks to consumer-protection regulations to ensure banks offer renewal options with no increase in payment for a period, or encouraging longer-term fixed mortgages (like 7- or 10-year terms) to give borrowers more stability.

It’s also worth noting that monetary policy (interest rates), while independently set by the Bank of Canada, is a de facto part of the policy mix affecting mortgages. If inflation continues to cool, rate cuts in 2025 would alleviate some mortgage stress. In its communications, the Bank has explicitly acknowledged that elevated rates are painful for many mortgage-holders, but deemed necessary to restore price stability (The impact of higher interest rates on mortgage payments – Bank of Canada) (The impact of higher interest rates on mortgage payments – Bank of Canada). Should the economy falter, the Bank could loosen policy sooner, which would filter through to lower mortgage rates and improved housing affordability.

In sum, governments and regulators have been active in enacting policies to balance the housing market – trying to support would-be homebuyers and existing owners facing challenges, without reigniting excessive price growth or risking financial stability. Measures like extended amortizations and higher insured mortgage caps directly assist buyers, whereas OSFI’s limits and stress tests aim to keep lending standards sound. The policy environment will likely continue evolving, especially with affordability being both an economic and political priority. The combined impact of these policies will be seen in coming years: ideally, they contribute to a more sustainable housing market where Canadians can afford homes at reasonable risk levels, and the economy isn’t jeopardized by household debt.

Regional Insights: Provinces and Major Cities

Canada’s mortgage and homeownership trends show significant variation across different regions and cities, reflecting diverse housing markets:

Provincial Variations in Housing Markets

Home prices and debt levels differ widely by province, leading to different experiences for homeowners. The table below illustrates a breakdown of average home prices by province (as of January 2025) and the annual price change:

Sources: Canadian Real Estate Association data (Jan 2025); annual change vs. Jan 2024 (Canadian Housing Market Report Feb. 20th, 2025 | Interactive Map – WOWA.ca).

This data highlights a few important regional insights:

• Highest-cost regions: British Columbia and Ontario have by far the highest home prices. B.C.’s average approaches $1 million, and Ontario’s is not far behind (Canadian Housing Market Report Feb. 20th, 2025 | Interactive Map – WOWA.ca). Not coincidentally, these provinces also have the highest household debt ratios. Many buyers in B.C. and Ontario have had to take out large mortgages, often stretching income limits, which leaves them more sensitive to interest rate hikes. It’s in these provinces where affordability is most strained – for example, only about 21.7% of Ontario households and a mere 9.8% of B.C. households could afford an average single-detached house as of 2023 (Housing Affordability Reaches Worst-Ever Level In Canada) (Housing Affordability Reaches Worst-Ever Level In Canada). The mortgage stress is showing: as noted, Ontario saw a sharp rise in delinquencies in 2024 (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24), albeit to still-low levels. B.C. has also seen arrears tick up, though strong income growth and demand (including from immigration) have so far helped support its market.
• Prairie provinces and Newfoundland: Alberta, Saskatchewan, Manitoba, and Newfoundland & Labrador have much lower home prices and historically more modest price growth. These markets did not inflate as much during the pandemic boom, and in some cases (Alberta, Saskatchewan) were coming off a prior downturn (e.g. Alberta’s market was soft in mid-2010s after oil price drops). As a result, affordability is far better: in Manitoba, Sask, and Alberta, well over 70% of households can afford a condo, and more than half can afford a single-family home – vastly higher than in B.C./Ontario (Housing Affordability Reaches Worst-Ever Level In Canada) (Housing Affordability Reaches Worst-Ever Level In Canada). Mortgage debt loads in these provinces are smaller, and delinquency rates – while slightly higher than the national average historically – have been stable. For instance, Alberta typically has one of the higher 90-day arrears rates (around 0.3–0.4%) due to its more volatile economy, but entering 2025 it hasn’t seen a major jump in arrears, partly thanks to a recent resurgence in energy-sector employment. The Prairies also saw some of the strongest price gains in 2024 (Alberta +5.9%, Saskatchewan +6.8% YoY) (Canadian Housing Market Report Feb. 20th, 2025 | Interactive Map – WOWA.ca), as population growth from immigration and interprovincial migration boosted demand. This price appreciation, however, is from a relatively affordable base and has not so far led to the kind of overstretched borrowing seen in Toronto or Vancouver.
• Quebec and Atlantic Canada: Quebec sits in an intermediate position – cities like Montreal and Quebec City had significant price run-ups, but overall prices (~$500k on average) remain more moderate than Ontario or B.C. (Canadian Housing Market Report Feb. 20th, 2025 | Interactive Map – WOWA.ca). Quebec households also tend to carry slightly less debt. Montreal’s affordability, while worse than in the past, hovered near its record worst in late 2023 at ~52% of income needed (Housing Affordability Reaches Worst-Ever Level In Canada) – challenging, but better than Toronto’s ~84%. Atlantic Canada (Nova Scotia, New Brunswick, PEI, Newfoundland) experienced a mini-boom as well, especially as some Ontarians moved east for cheaper housing. Halifax, for example, saw its affordability index worsen to 44% of income (a record for that city, though the level is far below big metros) (Housing Affordability Reaches Worst-Ever Level In Canada). New Brunswick led price growth in 2024 with a 12% annual increase (Canadian Housing Market Report Feb. 20th, 2025 | Interactive Map – WOWA.ca), albeit with an average price still under $320k. This shows how some smaller provinces are catching up after decades of flat prices. The influx of new residents and investors into Atlantic Canada pushed many local buyers to the brink – there were reports of bidding wars even in traditionally sleepy markets. However, as interest rates rose, these markets have cooled somewhat, and their lower absolute prices mean the mortgage burdens are more manageable. Atlantic Canada does have lower average incomes, which is a factor in affordability, but culturally there’s been a tendency towards lower household debt. We are seeing some convergence now: the gap between the “expensive” and “affordable” provinces narrowed during the pandemic (as cheap region prices jumped faster), but remains substantial.
• Migration effects: Interprovincial migration during the pandemic saw people move from expensive provinces (Ontario, B.C.) to more affordable ones (Atlantic Canada, Prairies). This helped distribute housing demand more evenly. As conditions normalize, some of that migration is reversing (e.g., Alberta’s inflows have slowed slightly, Ontario is regaining some migrants). These flows will continue to influence regional markets. For instance, if remote work remains common, provinces like Nova Scotia or Alberta may retain more new residents, keeping housing demand resilient there.

Major Urban Markets – Toronto, Vancouver, Montreal, and Others

Toronto (GTA) and Vancouver (GVA) are Canada’s largest and most expensive housing markets, and they drive many national trends:

• Toronto: Toronto’s real estate saw dramatic appreciation pre-2022, pushing the average detached home well above $1 million. The GTA also has a high concentration of condos, which provided a slightly more affordable entry point (though still pricey). With interest rates up, Toronto’s market slowed in 2022–2023, with prices dipping around 15-20% from peak before stabilizing. Affordability in Toronto reached its worst on record in late 2022 (the ownership cost-to-income hit 84.1% (Housing Affordability Reaches Worst-Ever Level In Canada)). By late 2024, there was mild improvement, but the city remains deeply unaffordable for average earners. First-time buyers in Toronto often require help from family or years of savings, and even then may only afford a condo far from the core. Toronto also has a significant number of highly leveraged investors who bought multiple properties; higher rates have pinched this group, leading to some selling or cash flow issues on rental properties. On the mortgage front, Toronto-area borrowers tend to have larger loan sizes (hence larger payment increases at renewal). So far, the delinquency rate in Toronto remains very low (around 0.1–0.2%), but consumer insolvencies and credit delinquencies have risen in the city, indicating growing financial stress (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24). The GTA’s population is growing robustly (thanks to immigration), so housing demand underpins the market – any relief in mortgage rates could quickly reignite price growth if supply doesn’t keep up. A notable trend is more Torontonians moving to suburban or exurban areas for affordability, which has spurred rapid growth in those regions (and longer commandos for others).
• Vancouver: Vancouver is often cited among the least affordable cities globally. It saw a resurgence in 2021 with ultra-low rates, propelling the average price in Greater Vancouver to around $1.2–1.3 million. By Q3 2023, owning a representative Vancouver home cost an unprecedented 102% of median income (Housing Affordability Reaches Worst-Ever Level In Canada) – essentially out of reach without dual high incomes or accumulated wealth. Vancouver’s market is influenced not only by local factors but also international ones (historically significant foreign investment, though curtailed by taxes and bans recently). Like Toronto, Vancouver home prices dipped when rates rose, but have since leveled off; inventory remains tight. Many Vancouver owners are equity-rich (having owned for years), but newer buyers have taken on huge mortgages. Mortgage sizes in Vancouver are the largest in Canada, so the impact of higher rates is acute. The B.C. government has various programs (e.g. first-time buyer property transfer tax exemption up to certain price, speculation and vacancy tax, etc.) to temper the market. The mortgage delinquency rate in B.C. has been extremely low (often under 0.1% in Vancouver), reflecting households doing whatever it takes to pay the mortgage – including taking on roommates, loans from family, or making lifestyle cutbacks. Going forward, Vancouver faces a persistent affordability crisis; even with the foreign buyer ban, local demand and limited land keep prices high. Creative solutions like co-ownership, laneway houses, and stratified multi-family homes are more common in Vancouver as people find workarounds to buy in an expensive market.
• Montreal: Montreal has traditionally been more renter-oriented and had lower prices, but it experienced strong price growth in the past few years. The city’s home prices, while much lower than Toronto/Vancouver, reached record highs and strained many locals (especially first-time buyers who hadn’t benefited from past price gains). The market cooled with higher rates, and Montreal’s home values saw a moderate correction. Affordability in Montreal (~52% of income for ownership costs) is better than the national average, and the province of Quebec has culturally been more debt-averse (e.g., shorter amortizations like 20 years are common there, and people often prioritize paying down mortgages). As a result, mortgage arrears in Quebec are low. Montreal’s challenge is more about supply of suitable housing – there’s a shortage of larger homes for families on the island, and suburban expansion is meeting local resistance. The provincial government has not intervened in mortgages as actively as Ontario/B.C. did with foreign buyer taxes (Quebec only recently allowed Montreal to implement a foreign buyer tax if needed). Montreal’s mortgage market is fairly stable, but language can be a barrier – some smaller lenders or brokers cater specifically to the francophone market. Overall, Montreal doesn’t face the same degree of mortgage stress as Toronto/Vancouver, but rising rates have definitely cooled what was a red-hot market in 2021.
• Calgary and Edmonton: In Alberta’s big cities, housing is far more affordable (Calgary’s average house around $550k, Edmonton ~$400k). These markets are cyclical due to the oil economy. After a slump around 2015-2019, they bounced back as people moved in for jobs and affordable living. Mortgage delinquency rates in these cities tend to be a bit higher than in Central Canada – e.g., Edmonton’s arrears might hover around 0.3–0.5% historically. In 2024, both cities actually saw an uptick in sales and prices, partly because their markets had room to grow and weren’t as affected by rate hikes (monthly payments on a $400k mortgage, even at higher rates, are still manageable for median incomes there). Many buyers from out-of-province are choosing Calgary, which supported its housing market. So Alberta’s urban markets are a good-news story in some ways: strong population growth and decent affordability leading to resilient housing demand, though if interest rates remain high, the pace of growth could slow.
• Other cities: Smaller urban areas like Ottawa, Halifax, Winnipeg, Saskatoon each have their nuances. Ottawa, with many government jobs, had high incomes and saw big price gains; it now has affordability around 48% of income (Housing Affordability Reaches Worst-Ever Level In Canada) and has cooled alongside Toronto. Halifax, as mentioned, saw a population and price boom and is now adjusting. Winnipeg and Saskatoon remained relatively affordable (Winnipeg’s market is quite stable due to slow growth and ample land; Saskatoon saw recent gains). In many mid-sized cities, mortgage challenges mirror the national trends: first-time buyers struggling, existing owners dealing with renewals, but fewer extreme debt loads than in the largest metros.
• Rural and remote areas: Outside the cities, many rural regions saw surprising housing demand during the pandemic (people moving to cottages or country properties). These areas often rely on local credit unions for mortgages. With fuel costs up and some return-to-office, a few remote areas have softened again, but generally the price level is not the main issue – it’s the lack of housing quality or economic opportunity that shapes these markets. Mortgage delinquency in rural areas can be higher if local economies are weak (e.g., parts of Atlantic Canada, northern Ontario), but many rural homeowners also have smaller loans or own outright.

In terms of policy impacts regionally, the foreign buyer ban and higher down payment requirements mainly affected Toronto and Vancouver (and to some extent Montreal). The insured mortgage changes (30-year amortization, $1.5M cap) will mostly benefit buyers in expensive markets (Toronto, Vancouver, Victoria, perhaps Ottawa) where home prices breach prior limits. Meanwhile, the bulk of new housing construction spurred by government programs is targeted at high-demand urban centers but also at growing mid-size cities where affordability is slipping (e.g., Hamilton, London, Halifax).

In conclusion, Canada’s housing and mortgage story is really a collection of regional stories. While nationwide trends set the backdrop (rising rates, high debt, policy changes), the on-the-ground reality for a homeowner in Vancouver vs. one in Regina is quite different. Vancouverites worry about astronomical prices and huge mortgages; Prairie residents might worry more about job security than housing cost. Atlantic Canadians are experiencing being part of a housing boom perhaps for the first time. Toronto and Vancouver remain the epicenters of risk (where a correction or surge would have outsized effects on the national figures). As we move forward, regional differences will continue – and perhaps even sharpen – as each local market responds to the economic and policy climate. Policymakers are cognizant of this and often tailor or target measures (for instance, some programs explicitly aim to help Atlantic or Prairie growth). For Canadians, the dream of homeownership and the burden of a mortgage are very much tied to where they live, not just national averages.

Sources: The information in this report is drawn from a range of reliable sources, including Bank of Canada analyses, Canada Mortgage and Housing Corporation (CMHC) reports, consumer surveys, credit bureau data, and news from financial media. Key statistics and claims are supported by citations: rising interest rate trends (Bank of Canada Interest Rate 1935-2025 | WOWA.ca), low delinquency rates and recent upticks (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24), renewal risk figures (Fall 2024 RMIR shows rising debt, delinquencies and falling rates | CMHC) (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24), affordability metrics (Home affordability improves, but still challenging for many Canadians: RBC report – Mortgage Rates & Mortgage Broker News in Canada) (Housing Affordability Reaches Worst-Ever Level In Canada), consumer debt levels (Ontario’s mortgage delinquency rate nearly doubled in the final months of 2024 – CP24), government policy details (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca) (Government announces boldest mortgage reforms in decades to unlock homeownership for more Canadians – Canada.ca), and regional price data (Canadian Housing Market Report Feb. 20th, 2025 | Interactive Map – WOWA.ca), among others. These references provide further detail and context for the points discussed.

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