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Recession Fears Loom, 51% of Canadians Would Miss Mortgage Payment Within Three Months

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From RateFilter.ca

By  Alan Harder

New data shows that Canadians are struggling with housing costs, with 62% spending more than the recommended 30% of pre-tax income on housing. Homeowners aren’t as financially secure as presumed, especially those holding mortgages. A concerning 51% of mortgage holders couldn’t survive more than three months without their primary income. This financial strain underscores the urgent need for both individuals and policymakers to address housing affordability.


Key Takeaways

  • 51% of mortgage holders could not make it more than three months without their primary income without missing a payment; 16% couldn’t last even one month.
  • 62% of Canadians exceed the CMHC’s recommended 30% limit on housing expenses, with the average household spending 37% of their pre-tax income on housing.
  • Homeowners generally spend less on housing than renters (average of 34% vs. 43% of their pre-tax income). However, this is skewed by the 35% of homeowners who are mortgage-free. Mortgage holders spend an average of 41% of their income on housing.

The Hidden Struggles Behind the Housing Data

For many Canadians, the dream of homeownership is being challenged by a worrying financial reality. New data reveals a landscape where both homeowners and renters are grappling with costs that exceed the Canada Mortgage and Housing Corporation’s (CMHC) recommended limit of spending no more than 30% of pre-tax income on housing.

Homeowners Not as Secure as Assumed

Although homeowners have traditionally enjoyed a degree of financial security, the numbers tell a different story. Yes, 35% of homeowners are mortgage-free, which brings down the average housing expenditure for this group to 34% of pre-tax income. However, that percentage can give a misleading impression of overall financial well-being.

The Precarious Position of Mortgage Holders

When you focus on homeowners with mortgages, the picture becomes quite bleak. These individuals are devoting a whopping 41% of their pre-tax income to housing. Alarmingly, over half (51%) couldn’t manage more than three months without their main source of income; 16% would be in trouble within just a month.

Ongoing Financial Strain Amid Past Rate Increases

Over the past 18 months, we’ve seen a series of rate hikes from the Bank of Canada, which has contributed to an ongoing financial strain for many Canadians. These historical increases have only intensified concerns about housing affordability and financial stability, irrespective of what future rate changes may or may not occur. This backdrop of rising rates adds another dimension to the already challenging landscape of housing costs.

A Critical Time for Financial Health

“These statistics corroborate what we’ve been hearing anecdotally,” says Andy Hill, co-founder of ratefilter.ca. “Many Canadians feel like they’re at a breaking point due to higher interest rates. Even if the Bank of Canada pauses the rate hike, these borrowers will still be dealing with rates at a 20-year high.”

The Fragile Job Market

The data is even more unsettling when considering job security. Despite a low unemployment rate, 16% of mortgage holders could not withstand a month without income before falling behind on their mortgage payments.

Conclusion

These figures underscore the urgency for both policymakers and individuals to address the rising costs of housing in Canada. While the statistics offer a broad view, the individual stories highlight an unsettling financial instability lurking beneath the surface.

Proportion of Pre-Tax Income on Housing

R1. Please think about how much you spend on housing each month. This would include mortgage/ rent, property tax, strata fees, and utility costs such as electricity, heat, water, and other municipal services. Approximately what percentage of your pre-tax income do you spend on housing?

Methodology

  • These results are based on an online survey of a representative sample of 1,548 adult Canadians (including 1,028 homeowners and 650 mortgage holders) surveyed using Leger’s panel, LEO, from October 13-16, 2023.
  • As a non-random internet survey, a margin of error is not reported. For comparison, a probability sample of n=1,548 would have a margin of error of ±2.5 percentage points, 19 times out of 20.
  • Any discrepancies between totals are due to rounding.

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The great policy challenge for governments in Canada in 2026

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From the Fraser Institute

By Ben Eisen and Jake Fuss

According to a recent study, living standards in Canada have declined over the past five years. And the country’s economic growth has been “ugly.” Crucially, all 10 provinces are experiencing this economic stagnation—there are no exceptions to Canada’s “ugly” growth record. In 2026, reversing this trend should be the top priority for the Carney government and provincial governments across the country.

Indeed, demographic and economic data across the country tell a remarkably similar story over the past five years. While there has been some overall economic growth in almost every province, in many cases provincial populations, fuelled by record-high levels of immigration, have grown almost as quickly. Although the total amount of economic production and income has increased from coast to coast, there are more people to divide that income between. Therefore, after we account for inflation and population growth, the data show Canadians are not better off than they were before.

Let’s dive into the numbers (adjusted for inflation) for each province. In British Columbia, the economy has grown by 13.7 per cent over the past five years but the population has grown by 11.0 per cent, which means the vast majority of the increase in the size of the economy is likely due to population growth—not improvements in productivity or living standards. In fact, per-person GDP, a key indicator of living standards, averaged only 0.5 per cent per year over the last five years, which is a miserable result by historic standards.

A similar story holds in other provinces. Prince Edward Island, Nova Scotia, Quebec and Saskatchewan all experienced some economic growth over the past five years but their populations grew at almost exactly the same rate. As a result, living standards have barely budged. In the remaining provinces (Newfoundland and Labrador, New Brunswick, Ontario, Manitoba and Alberta), population growth has outstripped economic growth, which means that even though the economy grew, living standards actually declined.

This coast-to-coast stagnation of living standards is unique in Canadian history. Historically, there’s usually variation in economic performance across the country—when one region struggles, better performance elsewhere helps drive national economic growth. For example, in the early 2010s while the Ontario and Quebec economies recovered slowly from the 2008/09 recession, Alberta and other resource-rich provinces experienced much stronger growth. Over the past five years, however, there has not been a “good news” story anywhere in the country when it comes to per-person economic growth and living standards.

In reality, Canada’s recent record-high levels of immigration and population growth have helped mask the country’s economic weakness. With more people to buy and sell goods and services, the overall economy is growing but living standards have barely budged. To craft policies to help raise living standards for Canadian families, policymakers in Ottawa and every provincial capital should remove regulatory barriers, reduce taxes and responsibly manage government finances. This is the great policy challenge for governments across the country in 2026 and beyond.

Ben Eisen

Senior Fellow, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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Land use will be British Columbia’s biggest issue in 2026

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By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

Resource Works News

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