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3mo ago

Nearly Half of Homeowners Facing Renewal Brace for Higher Mortgage Payments

Homeowners are locking in fixed rates to guard against rising borrowing costs.

A TD Bank Group survey, which ran between April 10 and 18, shows 57 per cent of homeowners facing mortgage renewals expect it will impact their living situation. Townhouses under construction are seen in Delta, B.C., on Monday, Aug. 12, 2024. THE CANADIAN PRESS/Darryl Dyck

Overview

  • Nearly half of Canadian homeowners due to renew their mortgages in the next year expect monthly payments to rise.
  • 57 per cent anticipate impacts on their living situations and 73 per cent of that group plan to curb discretionary spending.
  • Almost a quarter of survey participants say they will adjust their overall financial strategy, with 43 per cent pausing renovations and 29 per cent considering downsizing.
  • Seventy-five per cent of respondents are opting for fixed-rate mortgages to secure predictable payments.
  • Borrowing costs remain elevated compared to pre-2022 levels despite year-long cuts to the Bank of Canada's benchmark rate, with about 1.2 million mortgages due for renewal this year.