Equifax Canada explained that consumers in Ontario and British Columbia increasingly missed mortgage and credit card payments during the fourth quarter of 2023.

In Ontario, the mortgage delinquency rate increased by 135.2 percent compared to the previous year, while the rate in British Columbia rose by 62.2 percent.

The credit agency said that homeowners facing financial hardship in those provinces are also increasingly missing credit card payments, a trend primarily driven by homeowners aged 36 or younger.

Outside of British Columbia and Ontario, where mortgage amounts tend to be lower, Equifax Canada says that mortgage delinquency rates are rising at a slower pace and remain significantly lower than they were before the pandemic.

Mortgage delinquency rates across the country rose by 52.3 percent during the fourth quarter compared to the previous year, while delinquency rates for non-mortgage debts overdue by more than 90 days increased by 28.9 percent.

Equifax Canada pointed out that as homeowners continue to renew their mortgages in a much higher interest rate environment, consumers who locked in historically low interest rates in 2020 may struggle to maintain their monthly payments.