Brampton is emerging as the epicentre of Canada’s growing mortgage stress, with new data showing the city now has the highest mortgage delinquency rate among major municipalities—raising serious concerns about housing affordability and financial stability.
According to findings cited from Equifax Canada, mortgage delinquencies in Brampton—defined as homeowners missing payments for at least 90 days—have surged well above the national average. By the end of last year, 0.6 per cent of mortgages in the city were delinquent, compared to just 0.26 per cent across Canada. The contrast is even more striking when compared to 2019, when Brampton’s rate stood at only 0.06 per cent.
Industry experts say the numbers reflect a “perfect storm” of financial pressures hitting local homeowners at once.
“What we’re seeing in Brampton is the result of multiple pressure points converging at the same time,” said Rakhi Madan, pointing to rising interest rates, high borrowing levels, and shrinking financial buffers.
The situation is becoming increasingly visible in the housing market. Real estate data suggests that approximately one in every 20 homes currently listed in Brampton is a power-of-sale property—far higher than the provincial average of one in 50. These forced sales often occur when homeowners are unable to keep up with mortgage payments, triggering lender action.
The roots of the crisis can be traced back to the pandemic-era housing boom. Many buyers entered the market at peak prices, only to face a sharp correction. Home values in Brampton climbed from roughly $638,700 in 2019 to a peak of $1.24 million in early 2022, before falling about 30 per cent to around $855,000 earlier this year—leaving some homeowners with little or no equity.
Compared to neighbouring Mississauga, Brampton is showing significantly higher distress levels. In the first quarter alone, 14 homes in Brampton were sold under power of sale, more than double the six recorded in Mississauga. The gap has widened steadily over recent years.
“There is growing financial pressure in the market,” noted Sattar Erfanian Pour, highlighting the increasing number of distressed listings.
Looking ahead, the pressure may intensify. The Office of the Superintendent of Financial Institutions estimates that about 1.3 million mortgages across Canada are approaching renewal, many of them locked in at significantly lower interest rates during 2021 and 2022. As these mortgages reset, homeowners could face substantial increases in monthly payments.
In Brampton, where household sizes are larger and financial obligations often extend across families, the impact could be even more pronounced.
“It’s about the concentration of risk,” Madan explained. “Many households here are carrying high housing costs with very little margin for error—exactly when payments are rising.”
As the numbers continue to climb, Brampton’s housing market is becoming a key indicator of broader economic stress—raising urgent questions about affordability, lending practices, and whether enough safeguards are in place to protect homeowners from falling through the cracks.