The Bank of Canada says these are the 3 warning signs for mortgage default

As of November 2025, the report states that outstanding residential mortgage debt in Canada reached approximately $2.4 trillion.

A recently released Bank of Canada report states that there are “three key patterns” to Canadians’ path to mortgage delinquency.

It comes as national mortgage debt continues to increase and as the cost of living continues to bite into consumer bank accounts.

As of November 2025, the report states that outstanding residential mortgage debt in Canada reached approximately $2.4 trillion, equivalent to nearly 73 per cent of national gross domestic product and representing about 74 per cent of total household debt.

This is an increase from the $2.3 trillion in July 2024, according to Statistics Canada.

The report gathered its information from TransUnion Canada borrower credit data representing roughly 80 per cent of all household mortgages in Canada from 2015 to 2024.

The first pattern the Bank of Canada delves into is how “about two years before becoming delinquent on their mortgage, households begin to rely more heavily on consumer credit, such as credit cards and lines of credit.”

Scott Nazareth, a second-level mortgage agent at Mortgages.ca, broke down where credit utilization can become an issue.

“Typically, credit reporting agencies will recommend that your credit utilization does not exceed 33 per cent of the limit. Once you hit the 40-50 per cent threshold, that’s typically where the warning signs start,” he said.