Canadian Bank Mortgages Near 6-Year Low As Arrears Barely Budge

Canada’s banks just saw the first improvement in missed mortgage payments in nearly a year and a half. Canadian Bankers Association (CBA) data shows the mortgage arrears rate fell in June. While not much of a reduction, any signs of stabilization are welcome. Unfortunately, it’s not clear that is what’s actually happening here. The improvements are largely the result of a rounding skew, while bank mortgages have hit an almost 6-year low. Canadian Mortgage Arrears Rate Makes First Drop In Over A Year Canadian bank mortgage arrears rate: Mortgages 90 days past due (DPD) as a share of total mortgages. Source: CBA; Better Dwelling. The mortgage arrears rate at Canadian banks fell for the first time in well over a year. The rate fell 0.1 basis point (bp) to 0.28% in June, remaining 5 bps above last year. This was the first monthly decline for the rate since March 2025, which is a welcome improvement. However, the rate is still double 2022’s lows, and the progress looks even smaller when broken down. Canadian Mortgage Arrears Improvement Was Just 40 Fewer Arrears Canadian bank mortgage arrears: Total number of mortgages 90 days past due (DPD) held by banks. Source: CBA; Better Dwelling. ...