B.C. credit picture outperforms Canada despite mortgage delinquency rise

British Columbia’s overall consumer credit picture was stronger than Canada’s in the second quarter, according to TransUnion’s latest credit-industry insights report. B.C.’s total consumer delinquency rate, defined as payments 90 days or more overdue, fell from 1.71 per cent to 1.67 per cent. The national rate rose to 1.81 per cent.

Matt Fabian, TransUnion’s senior director of financial services research and consulting, said B.C. is relatively resilient compared with the rest of Canada. But the province’s mortgage delinquency rate rose seven basis points to 0.28 per cent. TransUnion defines mortgage delinquency as a household missing two consecutive mortgage payments. Fabian noted that 99.72 per cent of consumers are still paying on time, though he said the increase remains significant despite the small rate.

B.C. had the second-largest increase after Ontario, which Fabian suggested may reflect high housing costs in both provinces. The benchmark price of a Vancouver home was $1,088,800 in July 2026. Borrowers in such markets tend to have larger mortgage balances and may face mortgage-payment shock when rates rise, as they did in 2023 and 2024.

Fabian said most households can manage by reallocating spending, but a smaller group faces major financial strain, particularly after a period of high inflation. Those households may have to weigh spending on fuel and groceries against debt payments and decide which debts to pay first.

Canadian consumer debt reached a record $2.46 trillion in the second quarter of 2026, the report said. Fabian said $1.9 trillion of that total was mortgage debt, which can build equity for some borrowers. National non-mortgage debt has been relatively stable, a measure he described as a more useful indicator of credit health.