A clear guide to understanding the risks, recent figures and possible solutions
When mortgage payments become heavy, the first fear often appears quickly: “Am I going to lose my home?” The answer is almost never automatic. It depends on the nature of the property, the available equity, the other secured creditors, the province and, above all, the type of solution considered before a crisis turns into a foreclosure or forced sale.
Recent data show a mixed picture. According to the Canadian Bankers Association, a mortgage is considered in arrears when payments are three months or more past due. In March 2026, the national mortgage arrears rate was 0.28%. In other words, more than 99% of bank mortgage holders in Canada were not in serious default. This figure remains low, but it has risen from the lows observed after the pandemic.
Quebec is in a slightly less strained position than the Canadian average. For the period ending February 28, 2026, the Canadian Bankers Association reported 1,809 mortgages in arrears out of 931,452 mortgages in Quebec, or 0.19%. Across Canada, the same table recorded 13,749 mortgages in arrears out of 4,937,235 mortgages, or 0.28%. These percentages may seem tiny, but behind every file there is a budget, a family and often several months of quiet stress.
The Canada Mortgage and Housing Corporation (CMHC) is also observing growing pressure. Its recent residential mortgage market report states that Canadian residential mortgage debt exceeded $2.4 trillion in December 2025. It also notes that borrower stress is increasing as the labour market weakens and the accumulated effects of higher interest rates continue to be felt. Another CMHC analysis expects mortgage arrears to keep rising moderately from late 2025 to late 2026, with significant differences from one market to another.
That said, being behind on a mortgage does not always mean losing the residence. The first question to ask is simple: is this your principal residence or a secondary residence? In some provinces, an exemption may protect part of the equity in a principal residence. In Quebec, however, there is no general principal residence exemption in bankruptcy. If equity exists, it must therefore be analyzed carefully.
Equity is the amount that would theoretically remain after the property is sold and after the mortgage, selling costs, applicable taxes and other secured claims are paid. If the property belongs to more than one person, only your share must be reviewed. If it is a secondary residence, a taxable capital gain could also affect the analysis. This is why the title deed, deed of purchase, mortgage deed and registrations published against the property become key pieces of the puzzle.
When equity exists, bankruptcy is not the only path. A consumer proposal may allow you to keep your assets while offering a settlement to creditors. In other cases, it may be possible to pay the equity under a reasonable agreement. If no equity exists, keeping the home depends mainly on the ability to catch up and maintain the current mortgage payments.
The right reflex is to act early. Waiting until letters pile up or the lender loses patience reduces the options. A consultation with a Licensed Insolvency Trustee makes it possible to measure the real equity, compare scenarios and protect what can be protected. Before concluding that the home is lost, you need to open the file, review the numbers and choose the solution with clear eyes. Fear makes noise; the calculations shine a better light.
Key takeaway
A payment default is a warning signal, not a verdict. The key is to quickly assess the equity, the type of property, the secured creditors and the possible solutions before proceedings accelerate.
If you are having difficulty making ends meet, it is important not to wait until the situation gets worse. We can help you understand your options and find a solution adapted to your financial reality.
If you are still experiencing difficulties despite certain changes in your habits, know that we are here to help you regain control of your finances.
If you feel that you no longer have control over your financial situation, there is no shame in consulting a Licensed Insolvency Trustee who can guide you and help you see your future after debt!
Several ways to reach the Ginsberg Gingras team:
- By phone: (800) 567-1905
- Website: ginsberg-gingras.com
Sources used for the statistics
- Canadian Bankers Association, ‘Mortgages in arrears in Canada – what the numbers mean’, most recent data indicating 0.28% in March 2026.
- Canadian Bankers Association, ‘Number of residential mortgages in arrears’, period ending February 28, 2026, Quebec and Canada data.
- CMHC, ‘Residential Mortgage Industry Report’, data published in 2026 on mortgage debt and borrower stress.
- CMHC, ‘Mortgage renewal wave strains some regions and borrowers’, analysis published in 2026 on the expected moderate rise in arrears.
