TORONTO — Nearly half of homeowners facing a mortgage renewal in the next year expect their monthly payments to go up — with many anticipating having to adjust their budget to keep up with the higher cost, a survey published on Thursday shows.
A TD Bank Group survey, conducted between April 10 and 18, said 45 per cent of homeowners facing a mortgage renewal are expecting their monthly payments to rise.
The Bank of Canada held its overnight rate steady at 2.75 per cent on Wednesday — roughly half of what it was last year. But even as the central bank has reduced its key rate over the past year, borrowing costs are still higher compared to pre-2022 levels.
Affordability remains a concern for many homeowners. At least 57 per cent of survey respondents said they expect the renewal to impact their living situation and 73 per cent of those said they'll need to cut back on spending.
A Royal LePage report published in February estimated 1.2 million mortgages are up for renewal this year.
Nearly a quarter of the 890 homeowners surveyed said they will be adjusting their overall financial approach.
The survey found 43 per cent of those will be putting renovations on pause, while 29 per cent plan on either downsizing or moving to a more affordable home. Fifteen per cent say they will consider having a roommate to share costs while 15 per cent say they will need to move to a different neighbourhood.
Patrick Smith, TD's vice-president of product management, said 75 per cent of homeowners are leaning toward a fixed-rate mortgage upon renewal instead of a variable rate.
The housing market has seen a lull over the last few months amid economic uncertainty brought on by the global trade war. But lower home prices in certain markets could be an opportunity for some Canadians looking to buy — and they're preparing for it.
The TD report suggested potential homebuyers are making concessions to make the leap into home ownership, with more than half of 881 Canadians surveyed in a different poll saying they're reducing non-essential expenses.
The report also found 31 per cent of homebuyers are looking at cashing in their current investments such as tax-free savings accounts, registered retirement savings and first-time home savings accounts.
This report by The Canadian Press was first published June 5, 2025.
Companies in this story: (TSX: TD)
The Canadian Press
