Canada’s mortgage market held largely steady in the second quarter of 2026, but Ontario and British Columbia continued to diverge from the rest of the country, according to new data from credit bureau Equifax.
The company’s Q2 2026 Market Pulse presentation shows total mortgage balances across Canada reached $1.97 trillion, up 4% from a year earlier and 1% from the previous quarter. The average mortgage balance stood at $285,400, while lenders originated 310,200 new mortgage accounts during the quarter at an average loan amount of $362,300.
Despite the relatively stable national picture, severe delinquencies kept climbing. The 90-plus-day delinquency rate measured by mortgage balance rose to 0.30%, a 33.8% increase from a year earlier and up 7.2% from the first quarter. Measured by number of accounts, the delinquency rate reached 0.23%, up 17.5% year over year and 4.2% quarter over quarter.
Ontario and B.C. Diverge From National Trend
Equifax said that while overall delinquency levels remain relatively stable, Ontario and British Columbia stand apart, with both provinces showing a pronounced rise in severe mortgage delinquencies. The bureau attributed the pattern to several years of higher interest rates, payment shocks tied to mortgage renewals, and elevated living costs.
The strain is also spilling into other forms of borrowing. Among Ontario mortgage holders, severe delinquencies of 90 days or more on non-mortgage debt rose 27% year over year by balance and 24% by account count. In the rest of Canada, the equivalent increases were far smaller, at 2% and 3% respectively. Nationally, Equifax’s broader data showed severe non-mortgage delinquencies among mortgage holders were up 12.5% year over year.
Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said mortgage holders — particularly in Ontario — remain a source of concern, noting they are still experiencing rising missed payments, especially on non-mortgage credit obligations.
Equifax also described a payment hierarchy among homeowners, in which borrowers tend to prioritize their mortgage payments first, meaning early signs of financial stress often surface through missed payments on auto loans or other consumer debt before mortgage delinquencies appear.
First-Time Buyers Leaning on Joint Mortgages
The data also points to a growing reliance on joint mortgages among first-time homebuyers, a trend that is more pronounced in higher-cost provinces. Joint mortgage activity among first-time buyers has increased compared with the pre-COVID period, accounting for roughly 68% of first-time-buyer mortgages in the second quarter of 2026.
In Ontario and B.C., 11.4% of first-time-buyer mortgages involved joint borrowers with an age gap of more than 20 years, compared with 8.4% in the rest of Canada — a gap Equifax said suggests greater reliance on parental or family support in higher-cost housing markets.
Sole-holder mortgages made up 27.3% of first-time-buyer mortgages in Ontario and B.C., versus 30.4% in the rest of the country. Joint mortgages involving borrowers with an age gap of five years or less represented 50.8% of first-time-buyer mortgages in Ontario and B.C., compared with 49.6% elsewhere.
Originations Concentrated Among Stronger Credit Profiles
New mortgage originations in the quarter remained concentrated among borrowers with stronger credit profiles. More than half of new mortgages went to consumers with credit scores above 750. By age group, borrowers aged 36 to 45 accounted for 29% of new originations, followed by those aged 46 to 55 at 26%, while consumers 35 and under made up 21%.
By province, Quebec accounted for the largest share of new originations at 35%, followed by Ontario at 33%, British Columbia at 12% and Alberta at 10%. The Prairies and Atlantic Canada each accounted for 5% of new originations.
Renewal Cycle Remains Key Risk
Equifax said the second-quarter data shows mortgage stress remains relatively contained at the national level, even as pressures continue to build in Ontario, B.C. and among certain borrower groups. The bureau expects the mortgage renewal cycle to remain a key source of pressure going forward, with payment shocks potentially driving increased borrower mobility and lender switching.
The growing use of joint mortgages is also reshaping the profile of new borrowers, particularly in higher-cost markets. Equifax recommended that lenders account for co-borrowing arrangements and multi-generational households in their risk models, and suggested using trended credit data along with earlier engagement with borrowers ahead of mortgage maturity dates.
Kathy Catsiliras, vice-president of analytical consulting at Equifax Canada, said the scale of regional differences means lenders need tailored approaches rather than a uniform national strategy. She said a one-size-fits-all model does not work, and that the scale of differences across the country makes geographically specific strategies critical at both the adjudication and account management level.
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