Mortgage Renewals Spark Resilience in Canada’s Housing Markets

Toronto’s mortgage arrears have more than quadrupled from post-pandemic lows, driven by high household debt, investor exposure, falling prices, and a weaker labor market. Vancouver shows a moderate rise, while other cities face varied risks. Pandemic-era buyers with limited equity are most vulnerable. Despite rising arrears, national rates remain low due to borrower adjustments, amortization extensions, stable incomes, and mortgage stress tests. Close regional monitoring is advised.