More than half of the Canadians, who need to renew their mortgages in 2025, expect their monthly payments to be increased, according to a new Royal Lepage survey, with a huge majority of them saying that the increase will put financial tension to their households.
The survey of 1340 Canadians who are ready to renew their mortgages this year, conducted by Leger’s opinion, found that 57 percent expect their monthly payments to increase upon renewal. Of those who expect to face higher monthly payments, 81 percent say the growth will put financial tension to their households, with 34 percent reporting that the tension will be “significant”.
The study also found that 25 percent of Canadians expect their monthly payments to remain approximately the same (within $ 100 a month), while 15 percent expect their monthly payments to decrease.
“As for the renewal of mortgage loans after the pandemic, many Canadians avoid the worst scenario of the need to sell their homes because of the inability to cover their mortgage costs thanks to the solid employment trends and the reduction of interest rates,” Phil Phil Fils , President and CEO of Royal Lepage, a statement said.
“Nevertheless, some will face a significant increase in their mortgage costs, putting additional pressure on their household finances.”
In 2025, there were approximately 1.2 million fixed rates for renewal, according to Canada for mortgage housing, with 85 percent being signed when the interest rate of the Canada bank was on or below one percentage. While Canada’s bank aggressively raised interest rates in response to increasing inflation, last June, the Central Bank has been declining its reference rate, leading to some relief to those preparing for renewal and concerns about the economic impact of a mortgage shock. However, many of them obey financial tensions.
The study found that of those who expect to face financial resumption difficulties, 60 percent plan to reduce or eliminate discretional costs. Another 43 percent say they will reduce travel and vacation, while 36 percent say they will eliminate saving and investing (respondents have managed to choose more than one answer.)
“Even in challenging financial times, Canadians continue to prioritize home ownership and pay their mortgages – reduce other costs and even savings, if absolutely necessary,” Sopper said.
While many plan to change their spending habits, few are considering more drastic measures such as reducing or moving. The study found that 62 percent of the respondents did not consider changes in their life agreement. Eleven percent are considering moving to a more affordable region, 10 percent are considering reducing their home, and another 10 percent are thinking of hiring some of their home to help mortgage costs.