Mortgage defaults are accelerating within the Toronto housing market according to data tracked by broker John Flynn on X.
The Toronto Regional Real Estate Board (TRREB) reported over 200 active or conditional listings for power of sale or bank-owned properties, blowing past that milestone for the first time, while the Information Technology Systems Ontario (ITSO) recorded over 100 similar mortgage default listings as well.
These numbers only include the active listings, not properties that have already been sold through power of sale, according to Flynn. So the true number of mortgage defaults is likely much higher.
The surge in defaults comes amid rising interest rates aimed at tackling inflation. Many homeowners, especially those with variable-rate mortgages, are facing much higher monthly payments.
“Missed payment levels in Ontario and BC are primarily being driven by younger homeowners (defined as 36 years of age and under) where both balance and account delinquency rates are now higher than in 2019,” according to credit rating agency Equifax Canada in a report from March.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
