Ontario credit union commercial delinquency jumps 98 basis points to 2.80%

Ontario credit unions are showing rising commercial loan stress, even as residential mortgage delinquency eased slightly in the same period.

 

Mortgage Professional America reported Nov 2 on the FSRA Ontario credit unions Q2 Sector Outlook. Sector assets were $106.47B at June 30. Commercial delinquency rose 98 basis points year over year to 2.80%, and loans over 90 days delinquent rose to 1.08%, from 0.99% in Q1 and 0.71% a year earlier.

 

Loan loss allowances rose 37.2% to $399M. Thirty day residential mortgage delinquency eased slightly to 1.13%, from 1.15%.

 

For investors and borrowers, the split is the story. Residential arrears are holding roughly steady at this lender group, while commercial delinquency and total loans over 90 days late are climbing, and lenders are reserving materially more against losses. Expect tighter commercial credit and more lender led sales from stressed commercial borrowers, and price that into offers on Ontario commercial assets.

 

Source: FSRA Ontario credit unions Q2 Sector Outlook, reported by Mortgage Professional America, Nov 2, 2026.