If you've been watching the news, you've probably noticed a word that hasn't come up much in BC for a long time: foreclosure. According to the provincial government, BC just recorded its highest level of foreclosure activity in a decade. In Metro Vancouver, court ordered home listings climbed from 28 in October 2023 to 66 in October 2024, then to 119 in October 2025. At the current pace, 2026 could see more than 1,200.
That sounds alarming, and it deserves attention. But it also deserves context.
How today compares to the past
When the 2008 financial crisis hit, Vancouver got off lightly. Our local downturn was short, so few homes ended up in court. This time is different. Court ordered listings are now at their highest level in roughly two decades.
That said, these properties still make up less than one per cent of the market. This is a sign of real financial stress for some households, not a market collapse.
Why this is happening now
Think of it as a perfect storm that took five years to arrive.
Cheap money. In 2021, five year fixed mortgage rates dipped as low as 1.39%. Buyers qualified under the federal stress test, but many borrowed large amounts at record high prices.
Fast rate hikes. To fight inflation, the Bank of Canada raised its overnight rate from 0.25% to 5.00% in about a year and a half. Rates have come down since, but not close to where they were.
Renewal shock. Those 2021 mortgages are renewing now. The Bank of Canada estimates that homeowners coming off a five year fixed rate face average payment increases of 15% to 20%, and some will see jumps of over 40%.
A delayed reaction. It can take up to a year between a first missed payment and a home appearing as a court ordered sale. The listings we see today reflect pressure that started months ago.
It's not who you'd expect
Foreclosures aren't limited to first time buyers stretched on a condo. The trend has moved into Metro Vancouver's most expensive neighbourhoods. This summer, a Shaughnessy mansion sold through the courts for $10 million, less than half of what it was listed for a few years earlier. In Surrey, half of the more than 100 active court ordered listings are priced above $1.2 million.
In most cases, the trigger isn't the higher payment alone. It's a higher payment combined with a life event: a job loss, an illness, a divorce, or a death in the family.
How foreclosure works in BC
BC handles foreclosure through the courts. A lender can't simply take a home and sell it. The court first issues an order that usually gives the homeowner six months to catch up on what's owed.
That window matters. During it, a homeowner can still sell on their own terms, restructure their mortgage, or refinance. Once the court takes control of the sale, those options shrink quickly, and the price is often lower than a regular sale would achieve.
What you can do
If your mortgage is renewing in the next 12 to 18 months, start the conversation early. Here's where to begin:
- Know your number. Find out what your payment will likely be at renewal before your lender sends the offer.
- Don't auto renew. Your current lender's first offer is rarely its best. Shopping the market can save you thousands.
- Look at your structure. Amortization, term length, and product type can all change your monthly payment.
- Ask early if you're worried. The earlier stress is spotted, the more options you have. Waiting until payments are missed is when choices start disappearing.
A renewal is one of the few times you get to reset your mortgage without penalty. Used well, it's an opportunity, not a threat.
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