Data from Equifax shows that mortgage delinquencies in Canada declined in Q4 2019. Delinquencies are largely about liquidity. If someone can’t pay their mortgage, they can sell the house if the market is strong. If the market is weak, they may go delinquent. Toronto and Vancouver aren’t mirroring the national trend. After delinquencies dropped for years in these markets, they are now rising. Montreal didn’t experience the same boom, and is still seeing its delinquency rate fall. Toronto and Vancouver lead the Canadian real estate market, and their delinquencies may prefigure a national increase.
- Mortgage delinquencies remain lower in a hot market because owners can sell homes they can’t afford.
- The delinquency rate in Toronto had declined for five years before rising.
- While delinquencies are rising in Toronto and Vancouver, they are falling in Montreal.
“Mortgage delinquencies across Canada have been on the decline, generally speaking. The rate of delinquencies reached 0.29% in Q4 of 2019, down 3.34% from the previous quarter”