The rate of missed payments considerably exceeds the national average
Edmonton led the nation in terms of missed debt payments among households, according to an analysis by Borrowell.
The market posted 0.19 missed payments per homeowner in August, amounting to nearly two in 10 homeowners based on credit reports from that month. Nearly one in three non-mortgage holders in Edmonton also skipped at least one scheduled payment, Borrowell said.
“Edmonton has the highest rate of missed payments for homeowners … and also among non-homeowners for major cities in Canada,” said Andrew Graham, CEO and co-founder of Borrowell.
Overall, nearly three in 10 Edmonton consumers missed a payment in August, considerably higher than the national average of approximately two in 10, Borrowell said.
On the national level, homeowners held approximately 19.5 times more total debt ($393,887) than non-owners ($20,183) – but non-owners were 2.2 times more likely to have missed at least one payment, Borrowell said.
The share of Canadian homeowners with missed bill payments was around 11%, while the proportion of non-owners with this problem was 21%. This is a trend that does not bode well for non-owners’ prospects, Borrowell said.
“Buying homes in the future could pose a challenge for non-owners who are currently struggling to pay their bills on time,” Borrowell said. “In addition to the challenge of saving for a down payment, a good credit score is essential for Canadians to qualify for a mortgage, and payment history is the largest factor that impacts credit scores.”