Good news for Canada’s housing market: the national mortgage delinquency rate has fallen for the first time in three years, according to a recent report by the Canada Mortgage and Housing Corporation (CMHC). However, the story in the Greater Toronto Area (GTA) is a bit different. While the national delinquency rate dipped slightly to 0.22% in the second quarter of this year, Ontario, and specifically Toronto, saw an increase.
CMHC reports that Toronto mortgage delinquencies surged by 60% compared to the previous year, reaching 0.24% in the second quarter. This increase contrasts with improvements seen in Atlantic Canada, Quebec, and the Prairie provinces. The rise in delinquencies comes as many homeowners are renewing mortgages at significantly higher interest rates. CMHC notes that over 750,000 mortgages are up for renewal in the latter half of this year, with another 1.15 million in 2026.
To put the rate increases into perspective, the average rate on a five-year fixed uninsured mortgage was 2.36% in July 2020, compared to 3.95% this past July. While interest rates have recently shown some signs of easing, the impact of previous hikes continues to be felt by GTA homeowners. For a more in-depth analysis of the national trends, you can read the full article on ctvnews.ca.
Read the full article on CTV News
Read the original story here: https://www.ctvnews.ca/business/real-estate/article/canadian-mortgage-delinquency-rate-falls-for-first-time-in-three-years-cmhc/
