Toronto Mortgage Payment Misses Quadruple in Three Years, Report Reveals
The latest report from the Canadian Mortgage and Housing Corporation (CMHC) shows a concerning trend in the Toronto real estate market. Homeowners struggling to meet mortgage payments have more than quadrupled over the past three years. This increase highlights the challenges faced by many individuals in the Greater Toronto Area (GTA).
Rising Mortgage Payment Misses in Toronto
According to CMHC, the number of mortgage consumers in arrears has surged dramatically. In the third quarter of 2025, 2,797 homeowners in the GTA reported being behind on payments, a steep rise from just 662 individuals in 2022. Despite this surge, the overall mortgage delinquency rate in the GTA remains low at 0.26 percent.
Factors Contributing to Rising Arrears
- Increasing household debt levels
- Declining home prices and slower sales
- Heightened living costs
- Unemployment rates impacting disposable income
Tania Bourassa-Ochoa, deputy chief economist at CMHC, noted that the rise in mortgage arrears is particularly pronounced in the Toronto market. This trend is expected to continue, as the report indicates that arrear rates may rise modestly across Canada into 2026, with Toronto and Vancouver being among the most affected areas.
Impact of Economic Conditions
Approximately 2.2 million mortgages, representing 45 percent of all outstanding loans in Canada, are set for renewal in 2024 or 2025. Many homeowners will face higher payments compared to the lower rates during the pandemic years of 2020 and 2021. The report suggests that these economic conditions, including potential unemployment spikes, could exacerbate mortgage delinquencies.
Comparative Snapshot Across Canada
While the GTA experiences significant challenges, other Canadian cities show more stability. For instance:
- Montreal: Stable delinquency risk
- Ottawa, Winnipeg, and Halifax: Smaller increases in arrears
Some borrower groups, such as first-time buyers who purchased homes at peak prices, are particularly vulnerable. Their relative high debt levels put them at risk, especially following the low interest rates during the pandemic.
Future Projections
The CMHC report underscores that while current arrears remain low, they are projected to rise over the next year. The linked pressures of increased mortgage rates and economic instability will likely continue to impact homeowners in the Greater Toronto Area.
In summary, the rising mortgage payment misses in Toronto reflect broader economic challenges, particularly affecting new homeowners who entered the market during the pandemic. As these trends develop, close attention will be needed to understand their implications across the Greater Toronto Area and beyond.
