A new survey by TD Bank reveals that nearly three-quarters of Canadians are finding it difficult to manage their income as they brace for a significant rise in mortgage payments.
The study highlights the ongoing financial strain caused by rising living costs, trade tensions, and inflation, with 50% of respondents stating their lifestyle will be permanently impacted. Nearly 75% say they will need to completely overhaul their daily budget just to retain their homes.
While interest rates have gradually declined, the survey indicates this relief is not enough. Many Canadians are now taking drastic steps to cope:
- 43% are pausing home renovations
- 29% are considering selling, downsizing, or relocating to more affordable housing
- 15% are contemplating taking on a roommate
- Another 15% are actively seeking to move to a different neighborhood
Additionally, 33% say they may need to dip into personal savings vehicles like TFSAs, RRSPs, or First Home Savings Accounts just to buy a home.
Despite TD’s projection of a cooler housing market by late 2025, over half of prospective homebuyers are already slashing supplementary spending to prepare for ownership.