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Canadian renters are spending an ever-growing amount of their paycheques on rent, even though they may qualify for a mortgage.

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Nationally, they are spending 37.6 per cent of their income on rent, according to analysis from SingleKey Inc., falling just below the 40 per cent “crisis” level.

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But Toronto renters have already reached the crisis level by spending 41.1 per cent of their salaries on housing, or an average of $2,899 per month.

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The average rent in Canada is $2,200 per month, with Vancouver’s $3,095 per month rate being the most expensive city for renters.

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It’s no wonder renters have a hard time paying the bills. A recent Equifax Canada report said non-mortgage holders were twice as likely to miss a credit payment compared to those with a mortgage.

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“While the overall delinquency rate appears to be levelling off, the underlying story is far more complex,” Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, said in a release. “We continue to see a growing divide between mortgage and non-mortgage consumers, and continued financial strain among younger Canadians, who are facing a slower job market and rising costs.”

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Overall, 1.4 million Canadians missed a credit payment in the second quarter of 2025, while consumer debt climbed to $2.58 trillion, Equifax said.

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This comes despite rents for condos and apartments falling 3.6 per cent year over year in July, marking the 10th consecutive month where Canada’s rents have fallen year over year, according to Rentals.ca data.

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The good news for renters is that it doesn’t look like rent will be going up anytime soon.

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“The 3.6 per cent year-over-year rent decline in July is greater than the 2.7 per cent decline recorded in June and suggests that rent declines are likely to continue compounding,” Rentals.ca said in its report.

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Nevertheless, asking prices remain 11.1 per cent higher than three years ago, Rentals.ca said.

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Despite the challenges of paying their bills, many renters might still qualify for a mortgage. The average credit score among renters is 694, SingleKey said, which is above the 680 threshold needed for approval at many major banks.

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Renters in Toronto and Vancouver have credit scores of 729 and 730, respectively, which are significantly above the mortgage approval threshold.

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Alberta has the lowest provincial credit rating among renters at 681, so the average renter in every province has a credit score needed for mortgage approval.

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Canada’s inflation rate slowed down to 1.7 pr cent in July from 1.9 per cent a month prior, driven by a drop in gasoline prices due to the removal of the federal carbon tax.