Canadian Mortgage Stress Builds at Renewal as Bank of Canada Holds Rates

Financial pressure is building among Canadian households as borrowers renew mortgages at higher rates than they originally locked in, even though the Bank of Canada has kept its policy rate steady at 2.25% through a series of holds. According to credit-bureau data, mortgage delinquency balances were up about 32% from a year earlier nationally in early 2026, and roughly 52% higher in Ontario, though the overall share of mortgages seriously behind on payments remains low. Consumer insolvencies have climbed to their highest level since 2009, and the total dollar value of mortgage interest paid by households has risen as renewals take effect. The central bank has paused after a run of cuts, citing an uncertain outlook shaped by higher energy prices, which have nudged inflation up, and by trade tensions with the United States. Officials expect inflation to ease back toward the 2% target by early 2027 if energy costs cooperate, but they have signalled that the next move could be either a cut or a hike depending on the data. For many borrowers, the era of steadily falling rates has ended.