BREAKING: the Bank of Canada is forecasting mortgage defaults to skyrocket
Based on their forecast mortgage defaults forecast comparable to the 1990s recession
Additionally, they’re conservative. The actual level could be a significantly higher than what they’re presenting pic.twitter.com/vypmkaudsB
— Marc Nixon (@MarcNixon24) June 1, 2025
THIS is how far Canada has fallen, the year was 2015:
-Canada had the richest middle class in the world
-Canada was named the "most admired" country in the world
-Canada's debt was roughly 1/4 of what it is now
-Housing cost half as much
-Rent was $950/mo
-foodbanks…
— Tablesalt 🇨🇦 (@Tablesalt13) June 2, 2025
The Canadian housing market is heading toward a crisis, and the numbers are impossible to ignore. The Bank of Canada is forecasting a surge in mortgage defaults, warning that delinquency rates could reach levels comparable to the 1990s recession. The central bank’s projections are conservative, meaning the actual number of defaults could be significantly higher than what officials are publicly acknowledging.
The warning comes at a time when one million fixed-rate mortgages are set to renew in 2025, forcing homeowners to transition from historically low interest rates to much higher payments. The impact is already being felt—mortgage balances past due have climbed 43 percent year-over-year, and the rate of mortgages overdue by 90+ days has jumped from 0.14 percent in 2023 to 0.20 percent in 2024.
Sources:
https://www.bankofcanada.ca/2025/05/financial-stability-report-2025/