TORONTO – A survey shows 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 TD Bank Group survey, conducted between April 10 and 18, shows 57 per cent of homeowners expect the renewal to impact their living situation and 73 per cent of those say they’ll need to cut back on spending.
Even as the Bank of Canada has reduced its benchmark interest rate over the past year, borrowing costs are still elevated compared to pre-2022 levels.
Nearly a quarter of the 890 homeowners surveyed who are set to renew their mortgage in the next year say they will be adjusting their financial approach.
The survey shows 43 per cent of those will be putting renovations on pause, while 29 per cent plan on downsizing. Options such as moving in with a roommate or moving to a different neighbourhood are also on the table.
TD’s vice-president of product management Patrick Smith says 75 per cent of homeowners are leaning toward a fixed-rate mortgage upon renewal instead of a variable rate.
This report by The Canadian Press was first published June 5, 2025.
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