A survey shows nearly half of homeowners facing a mortgage renewal in the next year expect their monthly payments to go up — with many anticipating the need to adjust their budgets to keep up with the higher cost.
A TD Bank Group survey conducted between April 10 and 18 shows 57% of homeowners expect the renewal to impact their living situation, and 73% of those say they’ll need to cut back on spending.
Even as the Bank of Canada has reduced its benchmark interest rate over the past year, borrowing costs remain elevated compared to pre-2022 levels.
Nearly a quarter of the 890 homeowners surveyed who are set to renew their mortgage in the next year say they will be adjusting their financial approach.
The survey shows 43% of those will be putting renovations on pause, while 29% plan to downsize. Options such as moving in with a roommate or relocating to a different neighbourhood are also being considered.
TD’s vice-president of product management, Patrick Smith, says 75% of homeowners are leaning toward a fixed-rate mortgage upon renewal instead of a variable rate.