Big Six impaired loans nearly triple, but remain manageable
A new report from Morningstar DBRS is making the rounds in mortgage industry circles, and the headline number sounds alarming: impaired loans at Canada's Big Six banks have nearly tripled since 2022, reaching $37.5 billion in the second quarter of 2026. Before you panic, here's the context that actually matters if you're a homeowner, buyer, or renewing your mortgage soon.
What this means practically
A few takeaways worth keeping in mind:
Mortgages remain the stable part of the credit picture.... its mostly unsecure debt / loan that borrowers are behind and have trouble repaying.
Banks under credit pressure tend to tighten lending criteria elsewhere, which often means more borrowers.... especially those who are self-employed, carrying other debt, or with worse credit find themselves looking at alternative or private lending options to get a deal done.
If you're coming up on
a renewal, especially if your financial picture has shifted since you last qualified, it's worth reviewing your options early rather than waiting for your renewal letter to show up.
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