Your Credit Card Predicts Your Mortgage Default

Your Credit Card Predicts Your Mortgage Default

June 12, 2026 · 46 min · Episode 411

About this episode

The episode discusses how credit card usage can predict mortgage default, highlighting a two-year warning period before missed payments.

A new Bank of Canada staff paper tracked 9 million mortgage holders and found that mortgage delinquency has a warning signal, and it starts about two years before the missed payment, on credit cards and lines of credit, not the mortgage. We break down the two-year timeline, why households protect the mortgage until everything else breaks, and what it means for buyers, investors, lenders, and anyone underwriting Canadian real estate. The takeaway: by the time mortgage arrears spike, the stress has been building for months, so watch the rest of the balance sheet. Try it NordVPN risk-free now with a 30-day money-back guarantee! Use our code "realestate" to get 4 extras months from a 2 years plan Exchange-Traded Funds (ETFs) | BMO Global Asset Management LISTEN AD FREE See omnystudio.com/listener for privacy information.

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Hosts: Daniel Foch, Nick Hill

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Organizations: Bank of Canada

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