Even with interest rates starting to drop, people in Ontario are still struggling with a growing affordability crisis, especially when it comes to finding affordable housing. Recent numbers show that the financial pressure on residents is increasing as the cost of living rises.
Ontario’s mortgage debt reached a record high, going over $1 billion by the end of last year. Along with this, there’s been a significant increase in the number of homeowners falling behind on their mortgage payments. A report from Equifax Canada shows a 66.8% jump in the number of people in Ontario who are late on one or more mortgage payments compared to the same time last year.
This increase has led to the highest rate of mortgage delinquencies in Ontario since 2014, with over 3,000 home loans now in “severe delinquency.”
While the report mentions that inflation is stabilizing and interest rates are dropping, which is good news for many, the benefits are being offset by rising unemployment, making it harder for households to manage their finances.
Besides housing, Ontarians are also having trouble keeping up with other bills, like car loans and credit card payments. Equifax notes that “auto loan delinquency rates for non-bank auto lenders have reached a historic high,” and credit card debt has been a major factor in the overall rise in debt across Canada.
Canadians now owe a combined $122 billion on credit cards, which is a 13.7% increase from last year. The average credit card debt per person is now $4,300, the highest in 17 years, even though consumer spending has slowed down.
Young adults aged 26-35 are especially at risk, as this group is the most likely to miss payments on car loans and lines of credit.
Canada Housing Market 
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