Canadian homeowners face anxiety over mortgage renewals

A recent Royal Lepage survey indicates that approximately 35 per cent of Canadian homeowners feel more anxious about their upcoming mortgage renewals compared to previous ones. This anxiety is most prevalent among those who last renewed their mortgages in 2021 or 2022, during a period when the overnight rate was at 0.25 per cent.

While mortgage rates have declined from their 2023 peaks, many homeowners are still facing higher monthly payments than their original terms. According to the survey, 38 per cent of Canadians with a primary residence mortgage expect their monthly payments to increase upon renewal, with 12 per cent anticipating a significant jump.

In contrast, 31 per cent of respondents expect their payments to remain approximately the same, and 17 per cent expect a decrease. Royal Lepage CEO Phil Soper noted that many 2021 borrowers were stress-tested at rates near five per cent or higher, suggesting they may be able to manage the transition to the current rate environment.