Renewal wave peaks but still dominates mortgage market

Ottawa, May 12, 2026

Canada’s residential mortgage industry continued to be dominated by renewal activity in 2025, marking a peak in the mortgage renewal wave the industry has experienced in recent years. This according to Canada Mortgage and Housing Corporation’s (CMHC) latest Residential Mortgage Industry Report (RMIR).

Renewal volumes are expected to ease through 2026, due to the large number of 3 – 5-year mortgages originated at lower interest rates in the early 2020s now reaching the end of their terms. Still, most borrowers renewing their mortgages face significant increases in interest costs.

Borrowers also showed increased signs of financial stress as the national 90+ day delinquency rate edged up to 0.24% in fourth quarter of 2025, up from 0.21% a year earlier but still below pre-pandemic levels. This increase was driven primarily by increased delinquencies in Ontario and particularly the Toronto Census Metropolitan Area, up 35% and 45% year-over-year, respectively. Non-mortgage arrears also increased, though the pace of growth slowed.

In lending trends, residential mortgage debt crossed the $2.4 trillion mark in December 2025, up 4.8% year-over-year. Borrowers increasingly chose shorter mortgage term lengths and variable rates in response to interest rate uncertainty. The industry also saw a marked increase in insured lending, following regulatory changes that increased access to insured mortgages.

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“At the national level, mortgage arrears remain low by historical standards and the mortgage system overall is stable, but pockets of significant stress still exist beneath the surface, particularly in areas like Toronto and Vancouver where arrears have grown the most,” said Aled ab Iorwerth, Deputy Chief Economist at CMHC. “While the renewal wave is dissipating, many borrowers face increased financial stress. CMHC will continue to closely monitor how risk factors develop across the industry.”

For more details, download and read the full RMIR on the CMHC website.

Watch CMHC's podcast discussing the latest RMIR on YouTube.

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Canada Mortgage and Housing Corporation (CMHC) is a federal Crown corporation and a backbone institution of Canada’s housing system. For over 80 years, CMHC has supported the functioning of housing markets across the country through housing finance solutions — including mortgage loan insurance and securitization — while providing trusted, unbiased data, research and market intelligence to inform policy and decision making. Through its national presence, deep expertise in housing economics and finance, and a system-wide perspective, CMHC helps foster a more stable, well-functioning housing market that supports households, communities and the broader economy.

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