Rising Mortgage Arrears in Canada Pose Risks to Housing Market and Economy
Mortgage arrears in Canada are increasing following the Bank of Canada's latest interest rate hike, with economists warning the trend could continue and threaten both the housing market and broader economy.
Mortgage arrears in Canada are already on the rise and could continue to creep up, according to economists tracking the country's housing sector. 
Royce Mendes, managing director and head of macro strategy at Desjardins Group, identified rising mortgage arrears as a source of pain for the housing market and a tail risk for the economy.
The increase in arrears follows recent monetary policy moves. On October 28, the Bank of Canada hiked its overnight lending rate to 2.5 per cent from 2.25 per cent. Canada’s Big Six banks subsequently increased their prime lending rates in response to the central bank's decision. 