Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Are mortgage delinquencies rising?

Canada Mortgage and Housing Corporation tracks mortgage arrears nationally, and the honest answer for any single month is that the trend moves with renewal timing and local employment more than with a single national number, so a Saskatoon buyer should look at the mechanism, not a headline.

The mechanism is renewal risk. A borrower who locked a rate several years ago and is renewing now can see a materially higher payment, and CMHC's underwriting still tests every insured application against a gross debt service ratio of roughly 39 percent of income and a total debt service ratio of 44 percent for exactly that reason.

Those ratios are designed to leave room for a rate increase at renewal, which is why they exist even when a mortgage was affordable at the original rate. A household that qualified with less room to spare is the one most exposed if income drops or a term ends at a higher rate.

Whether delinquencies are rising in any given month matters less to a seller than whether their own renewal math still works, and that is worth checking early rather than at possession. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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