Rising Credit Stress and What It Means for Mortgages

Equifax Canada’s latest report shows 1.4 million Canadians missed a credit payment in the second quarter of 2025—an increase of over 118,000 compared to last year. Total consumer debt has climbed to $2.58 trillion, with average non-mortgage debt per person now sitting at $22,147.

Why this matters for mortgages

• Renewals under pressure: With many borrowers facing higher payments at renewal, added consumer debt raises the risk of missed mortgage payments.

• First-time buyers: Younger Canadians carrying heavier non-mortgage debt may find it harder to qualify for their first mortgage.

• Lender response: Expect lenders to keep a closer eye on debt-to-income ratios and tighten approval standards where needed.

https://www.canadianmortgagetrends.com/2025/08/1-4m-consumers-missed-a-credit-payment-in-second-quarter-equifax-report/?utm_source=chatgpt.com