November 9, 2026 | By Jarrett Hunter, Toronto Realtor®

It’s no secret that many Toronto homeowners have been dealing with higher borrowing costs, rising household expenses and an uncertain economy.

Now, a report from Canada Mortgage and Housing Corporation (CMHC) suggests that financial pressure is beginning to show up more clearly in mortgage payment statistics.

CMHC’s Fall 2026 Residential Mortgage Industry Report, published October 27, identifies Ontario and the Toronto region as areas where mortgage stress has been increasing.

That’s worth paying attention to, but it’s equally important to understand what the numbers actually tell us.

What Do These Numbers Really Mean?

CMHC reports that the Toronto area’s mortgage delinquency rate increased from 0.24% in the second quarter of 2025 to 0.33% in the second quarter of 2026.

In practical terms, 0.33% represents approximately 3.3 mortgages out of every 1,000 being at least 90 days overdue.

That is a meaningful increase from the previous year, but it also means the overwhelming majority of mortgages are not in serious arrears.

CMHC emphasizes that while delinquency rates are rising in some regions, they remain below the historical peaks experienced over the past three decades.

Why Are Some Homeowners Under More Pressure?

There isn’t one explanation that applies to every borrower.

Some homeowners are renewing mortgages at higher interest rates than they had previously. Others have experienced changes in employment, household income or unexpected expenses.

Higher credit card balances, vehicle loans and other debts can also make it more difficult to manage monthly housing costs.

CMHC notes that delinquency rates on some non-mortgage credit products have increased among mortgage holders. These changes can be early indicators of household financial pressure.

The report also identifies weaker economic and resale housing conditions in parts of Ontario as contributing factors.

How Does a Slower Real Estate Market Affect Homeowners?

In a strong housing market, an owner who needs to sell may be able to find a buyer relatively quickly.

Today’s Toronto market can be more complicated. Some properties take longer to sell, and values in several market segments have declined from earlier peaks.

For a homeowner who purchased near the height of the market, selling may not produce the amount of equity they originally expected.

That can limit the options available to someone who is already struggling with mortgage payments.

However, a rise in mortgage arrears doesn’t automatically mean that a large wave of distressed properties or foreclosures is coming to market.

What Should Homeowners Do If They’re Concerned?

If your mortgage is approaching renewal, it’s worth reviewing the available options well before the maturity date.

Speak with your lender or mortgage broker about current rates, term options, payments and any costs associated with changing your mortgage.

If you’re already having difficulty making payments, I would encourage you to contact your lender as early as possible rather than waiting until payments are missed.

Depending on the circumstances and lender requirements, there may be options to discuss. These could involve payment arrangements or other mortgage changes, although approval isn’t guaranteed and some adjustments can increase borrowing costs over time.

Anyone considering selling because of financial pressure should also obtain a realistic assessment of what their property might sell for today, along with an estimate of the mortgage payout and other selling expenses.

Source: CMHC — Residential Mortgage Industry Report, Fall 2026

This article provides general information, not personalized financial or mortgage advice.

Jarrett Hunter | Realtor® | RE/MAX Your Community Realty