Canada's total residential mortgage debt has reached a new all-time high, surpassing $2.4 trillion in January 2026, according to data released Tuesday by the Canada Mortgage and Housing Corporation (CMHC). The milestone reflects continued growth in the housing market, though concerns are mounting as delinquency rates begin to creep upward.
Mortgage Debt Growth
Residential mortgage debt increased by 4.8% year-over-year, outpacing growth seen in 2024. CMHC noted that while this gain aligns with the average for 2025, it remains below historical levels. The steady rise in debt underscores the ongoing demand for housing despite economic pressures.
Delinquency Rate on the Rise
The national 90-day or more delinquency rate rose to 0.24% in the fourth quarter of 2025, up from 0.21% a year earlier. This marks a gradual increase from the pandemic-era low recorded in the first quarter of 2021, which was the lowest rate ever documented. Although the current rate is still considered low by historical standards, the upward trend is notable.
Regional Hotspots
CMHC highlighted that delinquencies are particularly concentrated in Ontario, with certain regions driving the increase. Toronto, Barrie, and Windsor all recorded a 45% or more rise in delinquencies over a one-year period. These areas are experiencing heightened financial strain among homeowners, potentially due to higher living costs and interest rate pressures.
Big Six Banks Lead in Outstanding Mortgages
The Big Six banks reported the highest level of outstanding mortgages compared to other lenders. Their mortgage portfolios increased by 0.6% between the third quarter of 2024 and the same period in 2025. However, their share of newly originated mortgages declined by 6.9% over the same timeframe, suggesting that other lenders are gaining ground in the mortgage market.
More details are expected to emerge as CMHC continues to monitor the housing sector. The combination of record debt and rising delinquencies will be closely watched by policymakers and economists alike.
