According to a recent Equifax report, credit delinquencies have hit their highest level since 2009. That’s right, missed payments and growing debt are on the rise across Canada, and Ontario is no exception. In fact, Toronto alone saw a 14% year-over-year increase in non-mortgage delinquencies, while cities such as Ottawa and Edmonton are experiencing even higher spikes.
At Cannect, we believe staying informed is the first step to staying ahead, especially when it comes to managing your credit and securing the best mortgage options.
What the Equifax Report Reveals?
Equifax breaks down the delinquency data into mortgage and non-mortgage categories. Here’s what stood out:
- Toronto: 14% increase in non-mortgage delinquencies
- Ottawa: 22% increase
- Vancouver: 4% annual debt growth
- Edmonton: Only 0.3% debt growth, yet 18% delinquency rate
What does this mean? In cities where debt is still growing (like Toronto), lenders may be extending more credit. But in places where the “tap” has been turned off, people may be struggling without access to new financing.
Why People Are Struggling with Credit
- Rising interest rates are increasing monthly payments.
- Housing price corrections are compressing home equity.
- Debt servicing is becoming harder.
- Lenders are becoming more cautious about extending new credit.
These stressors are reflected in the numbers: 1 in 22 Canadians missed a payment in Q1 2024.
Even more alarming? Mortgage delinquencies are up by 71% year-over-year.
Mortgage Originations Are Up, And That’s a Good Thing
Here’s some positive news: Mortgage originations have increased by 57%. What does that mean?
More people are choosing to refinance or switch lenders rather than automatically renew with their current bank. It’s the era of the “great renewal,” and it’s an opportunity for homeowners to shop around for better rates, and that’s where Cannect comes in.
We leverage whisper rates, discounted rates that aren’t advertised, to get you the best deal. And we work with multiple lenders to make sure you’re not overpaying.
Credit Tips to Keep You Mortgage-Ready
If your credit needs a little TLC, don’t worry, it can bounce back fast. Here’s what we recommend:
DO
- Pay on time – Payment history is 35% of your credit score.
- Keep utilization under 30% – If your credit limit is $10,000, try not to carry more than $3,000.
- Keep old accounts open – The longer your credit history, the better.
- Review your credit report – Preferably with a pro (hey, that’s us 👋).
DON’T
- Assume carrying a balance helps, it doesn’t.
- Think minimum payments are enough, they’re not.
- Close old cards, thinking it will help, it’ll hurt.
- Avoid credit; you need active trade lines to build history.
Fixing Credit Is Easier Than You Think
If you’ve had a late payment or two, don’t panic. With the right steps, your credit score can recover within 60–90 days. The key is acting fast and smart, and we can help guide you.
Talk to a Cannect Credit Pro Today
Whether you’re trying to improve your credit, qualify for a mortgage, or explore refinancing options, our team is here to help you navigate it all. We read credit reports every day and know exactly what lenders want to see.
The best mortgage, the best rate, and the best service, Cannect has your back.
Watch the full podcast episode on YouTube
