More than half of Canadians renewing their mortgage expect increased payments

Looming mortgage renewals

Of those who expect their monthly mortgage payment to rise upon renewal, 81% say the increase will put financial strain on their household. Other answers were no more positive, with nearly half (47%) expecting a slight strain, and 34% expecting a “significant strain.”

Among them, about 60% say they will reduce or eliminate discretionary spending to help cope with the impact of increased monthly mortgage payments.

With the costly renewals looming, many are looking where they can cut down on spending. Another 43% say they will reduce or eliminate travel; 36% say they will reduce or eliminate saving or investing; 34% say they will reduce spending on essentials, such as gas and groceries; and 23% say they will obtain a second job or find another source of income. Respondents were able to select more than one answer.

Although a majority (62%) of respondents say they will not change their living arrangements to avoid potentially higher monthly mortgage costs, there are some respondents considering significant life changes in response to the renewal.

Nationally, 11% say they are considering relocating to a more affordable region; 10% say they are considering downsizing; and 10% say they are considering renting out a portion of their home to subsidize expenses.

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Rising popularity of variable rate loans

Respondents were divided on what sort of mortgage to renew with, given the uncertainty of the costs awaiting them.

Two-thirds (66%) of Canadians with a mortgage renewing this year say they plan to obtain a fixed-rate loan upon renewal, which is down from the three-quarters who currently hold fixed-rate mortgages. Separately, 29% say they will choose a variable-rate loan.

A fixed-rate mortgage is the most popular mortgage product in Canada, and a fifth of respondents that have a fixd-rate mortgage say they will switch to a variable-rate loan. Meanwhile, 61% of current variable-rate mortgage holders intend to renew with a variable-rate mortgage, and 37% say they will switch to a fixed-rate.

More than one-third of all respondents say they plan to obtain a five-year mortgage term upon renewal, followed by nearly a fifth who are looking at a three-year term.

The majority (86%) of respondents who will renew their mortgage in 2025 currently use a prime lender.

Survey methodology

Hill & Knowlton used the Leger Opinion online panel to survey 1,340 Canadians renewing their mortgage in 2025, aged 18 and above, from January 24 to February 5 with representative sampling across all provinces.