Report: One-third of mortgage holders in Canada are approaching renewal amid growing concerns over rising payments

Ottawa —
A new report on the state of mortgages in Canada revealed that an increasing number of homeowners are approaching the renewal date of their mortgage loans amid concerns about rising monthly payments, at a time when financial pressures on families are increasing due to the costs of living and housing.

The report showed that about one-third of mortgage holders expect to renew their loans within the next twelve months, while about two-thirds of them expressed concern about the possibility of facing higher interest rates upon renewal.

The findings indicate that the main challenge is no longer limited to the level of interest rates, but has become related to families' ability to absorb any additional increase in monthly expenses.

According to the report, 6% of mortgage holders are already facing difficulties in paying their current installments, while 44% confirmed that they would face financial pressures if their payments increased by less than 15%.

The pressures appear to be more severe among new buyers who entered the real estate market in the past five years, as well as among newcomers to Canada, where many of them indicated feeling worried about mortgage renewal, while a notable percentage expressed regret over the size of the loans they committed to when purchasing homes.

The report also revealed an increasing reliance on renting out part of the home to help cover housing costs, as more than one-third of Canadians said they need additional income from renting part of their property to maintain their ability to bear ownership burdens.

This percentage rises even more among newcomers, where more than half rely on this option or plan to use it in the future.

Despite the financial pressures, the report showed continued confidence in the Canadian real estate market in the long term, as the majority of participants see homeownership as still a good investment, and most consider the mortgage a form of “good debt” associated with building wealth and financial stability.

On the other hand, the ability to buy a home still represents a major challenge for non-owners, despite a slight improvement in the level of optimism compared to previous years. Many confirmed that rising prices and borrowing costs forced them to postpone home-buying plans, while some are considering moving to less expensive areas to achieve the dream of ownership.

The report reflects a picture of a real estate market facing a sensitive transitional phase, where the desire for ownership remains strong, but the pressures related to housing and financing costs have become an increasing challenge for a wide segment of Canadian families, especially new buyers and newcomers to the country.