While the major banks point to “historically low arrears,” the truth is more nuanced: arrears are rising, lending is tightening, and more Canadians are relying on equity-based lenders to protect their homes.
Here’s what the latest 2025 arrears numbers really mean — and why equity loans are becoming a lifeline for borrowers under pressure.
🌡️ What Does “In Arrears” Actually Mean?
A mortgage is considered in arrears when the borrower is 90 days or more behind on payments.
This is a critical economic indicator because it shows whether households are struggling to manage debt over time.
In short:
Arrears = homeowners under financial stress.
📉 Canada Still Has Low Arrears — But They’re Rising Fast
As of September 2025, Canada’s national arrears rate was:
➡️ 0.24% (less than 1 in 400 mortgages)
This is still far below countries like the U.S. or the U.K. Canada has always had a reputation for responsible mortgage borrowing — even during the 2008 crisis and the COVID-19 pandemic.
But here’s the part the headlines miss:
Arrears have been climbing for several months
And the triggers are building:
Higher living costs
Variable-rate resets
Tougher lending rules
Income instability
Rising unemployment
For many families, cash flow is tightening faster than expected.
🔍 Why More Canadians Are Slipping Into Arrears in 2025
Mortgage arrears track one thing very closely:
➡️ Employment conditions
When jobs become unstable, missed mortgage payments follow.
If 2026 brings a softer labour market — as many economists expect — we could see arrears continue to rise. And banks, historically conservative lenders, respond by tightening approvals even further.
Meaning:
✔ More declined borrowers
✔ More payment shock
✔ More homeowners searching for alternatives
🏠 Why Homeowners Are Turning to Equity Lenders Like Lendworth
Bank support exists — but it often moves slowly, involves re-qualifying, or requires strong income documentation.
That’s where private and equity-based lending becomes essential.
Lendworth approvals are based on your equity — not your income.
Even homeowners in arrears right now can qualify for:
Second mortgages
Home equity loans
Arrears payout loans
Power of sale prevention financing
Bridge loans
This is why our industry sees a spike every time arrears rise:
Homeowners need fast solutions, not paperwork delays.
🚨 What Rising Arrears Mean for You in 2026
If you’re feeling financial pressure…
You are not alone.
Tens of thousands of Canadians are bracing for:
Payment increases
Renewals at higher rates
Credit tightening
Lower cash flow
But the biggest risk isn’t missing a payment — it’s waiting too long before accessing your home’s equity.
Homeowners who act early avoid:
❌ Power of sale
❌ Legal fees
❌ Credit damage
❌ Forced refinancing
❌ Losing built-up equity
💡 The Bottom Line
Canada’s arrears rate is still low — but rising.
Banks are cautious.
Borrowers are stretched.
And equity-based lending is becoming the safety net Canadians rely on to stabilize finances, prevent foreclosure, and protect their home investment.
If you’re behind on payments, or see trouble ahead:
✔ Lendworth can stop arrears before they escalate.
✔ Approvals in 24 hours.
✔ No credit score needed.
✔ We fund across Ontario.
📞 Need help protecting your home?
Check your equity in under 60 seconds — no credit pull.
👉 Call Lendworth at 905-597-1225
👉 Apply online at lendworth.ca