Around 60% of Canadians renewing their mortgages this year expect higher monthly payments: Royal LePage
A recent Royal LePage survey reveals that 57% of Canadians renewing their mortgages in 2025 anticipate higher monthly payments, with 81% of this group expecting financial strain as a result. The survey, conducted by Hill & Knowlton, included 1,340 Canadians set to renew their mortgages this year.
- Anticipated Payment Changes: 35% expect a slight increase, 22% foresee a significant rise, 25% believe payments will remain stable (within $100), and 15% anticipate a decrease.
- Financial Adjustments: To manage increased payments, respondents plan to reduce discretionary spending (60%), cut back on travel (43%), and decrease savings or investments (36%).
- Regional Insights: Quebec residents are least likely to expect increased payments and financial strain upon renewal.
Phil Soper, President and CEO of Royal LePage, noted that while many Canadians have avoided selling their homes due to solid employment trends and declining interest rates, a substantial rise in mortgage costs will still pressure household finances.
Approximately 1.2 million mortgages are up for renewal in 2025, with 85% secured when the Bank of Canada’s key lending rate was at or below 1%. Despite recent rate cuts, current rates remain above pandemic-era lows, leading to higher renewal rates for many homeowners.
In response to rising costs, some Canadians are considering significant lifestyle changes: 11% are contemplating moving to more affordable regions, 10% are thinking about downsizing, and another 10% are considering renting out part of their homes.
As interest rates continue to decline, more Canadians are looking to sign variable-rate mortgages upon renewal. The ongoing trade conflict between the United States and Canada could prompt more aggressive rate cuts by the Bank of Canada to stave off a potential recession.