A new survey has found one-third of Canadian mortgage holders expect to renew their home loans within the next 12 months, with two-thirds of those borrowers expressing anxiety about renewing at a higher interest rate.
The survey, published by the nonprofit association Mortgage Professionals Canada, found 6% of respondents struggling with their current payments, while another 44% feared they would have additional difficulty if payments rose 15%.
The pressure is more pronounced among those who only recently became homeowners. Among past-five-year first-time buyers, 66% are anxious about renewing at a higher rate and 37% regret the size of mortgage they took on.
Among homeowners who recently immigrated to Canada, 68% are anxious about renewing at a higher rate and 57% regret the size of mortgage they took on. The survey found these newcomers to Canada are dealing with higher payment vulnerability – 67% are either already struggling or saying they would struggle before payments rose 15%, compared with 53% of past-five-year first-time buyers.
Furthermore, the report found more one-third of Canadians are renting part of their home to afford ownership, up from 25% in 2021. Among past-five-year first-time buyers, 29% have rented or plan to rent part of their home. Among those new to Canada, that share rises to 53%.
“Renewal pressure is not just about interest rates. It is about how much room households have to absorb a higher payment,” said Lauren van den Berg, president and CEO of Mortgage Professionals Canada. “This research shows many borrowers are approaching renewal with thin payment buffers, which makes early advice, careful planning and access to the right mortgage options more important than ever.”
However, the survey also found 76% of Canadians agree that real estate in Canada is a good long-term investment, while 74% classify mortgages as “good debt.” Among those new to Canada, 79% classify mortgages as good debt, the highest share among the segments highlighted in the report.
“For governments, regulators and industry, the message is clear: Canadians continue to value homeownership, but they need a system that supports them through today’s affordability pressures,” van den Berg said. “That means increasing consumer choice, better access to professional mortgage advice, and advancing practical policy solutions that keep the dream of homeownership within reach.”
The findings are based on an online survey of approximately 2,000 Canadians across all regions, conducted by Bond Brand Loyalty from Feb. 5-25.
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