The recent wave of mortgage renewals stemming from the era of ultra-low interest rates has led to concerns among Canadian homeowners about rising payments. A new report released by Royal LePage indicates that while mortgage delinquency rates in Canada remain notably low compared to other developed nations, many households are feeling the pressure of increased monthly costs.
According to the report, 38 percent of Canadians expect their mortgage payments to rise upon renewal. This figure marks a significant decrease from early 2025, when 57 percent of renewing homeowners anticipated higher payments. This change suggests a shifting perception among homeowners regarding the impact of interest rate hikes on their finances.
Among those anticipating an increase in their monthly payments, a staggering 76 percent reported that it would create financial strain on their households. More than half of these homeowners indicated that they would have to curb discretionary spending to manage their finances effectively. Despite this tightening of budgets, it is noteworthy that nearly three-quarters of respondents stated they would not alter their living arrangements in response to the upcoming payment changes.
Phil Soper, the chief executive of Royal LePage, acknowledged the apprehensions surrounding mortgage renewals at higher rates but emphasized that, in practice, most families have successfully navigated the adjustments to increased monthly payments. He noted that the widespread default crisis that many had feared has not materialized, suggesting resilience in the Canadian housing market.
The survey also highlighted specific behaviors among homeowners regarding their mortgages. Eight percent of respondents have opted to extend their amortization period, while six percent admitted to having missed or deferred a mortgage payment at least once during their current mortgage term. Alarmingly, among those who did miss a payment, 19 percent reported that their mortgage had fallen into arrears for 90 days or longer, illustrating that not all homeowners have found it easy to cope with the financial pressures of rising interest rates.
Adding to the context of this survey, the Bank of Canada has maintained its overnight lending rate at 2.25 percent since October 2025. This rate is considerably higher than the ultra-low 0.25 percent imposed during the pandemic but lower than the five percent threshold reached in 2023, which had considerable implications for borrowing costs and mortgage interest rates.
The survey, conducted by Burson using the Leger Opinion online panel, polled 1,127 Canadians between July 20 and August 6. It is important to note that the Canadian Research Insights Council, an organization focused on promoting polling standards, advises that online surveys cannot have a margin of error assigned to them due to their non-random sampling method.
As Canadian homeowners brace for the implications of renewing their mortgages in a climate of rising interest rates, the survey reflects a mixed landscape of anxiety and adaptability. While financial strain is evident among a significant portion of the population, many have found ways to manage their cash flows without drastically changing their lifestyles. The resilience displayed by families across the country may signal a cautiously optimistic outlook as they prepare to face the evolving mortgage landscape.
