A new Royal LePage survey finds Canadian homeowners bracing for higher payments, but stress levels have eased significantly from early 2025
One in three Canadians renewing their mortgage this year say they feel more anxious than at their previous renewal, though the wave of financial distress that many feared has largely not materialised.
A new survey for Royal LePage, conducted by Burson between July 20 and August 6, 2026, polled 1,127 Canadian homeowners facing renewal. It found that 35 per cent report heightened anxiety compared to their last renewal, while 38 per cent expect monthly payments to rise when they sign their new terms, down sharply from 57 per cent who anticipated increases in early 2025.
The shift reflects the Bank of Canada's rate cuts, which brought its overnight lending rate from a peak of 4.25 per cent at the end of 2022 to its current level of 2.25 per cent, reached in October 2025.
"The pandemic-triggered era of ultra-low rates came to an abrupt halt in early 2022, having lasted less than two years," said Phil Soper, president and chief executive officer of Royal LePage. "What we are finding in practice is that families are managing the transition."
Pandemic-era borrowers feel the pressure most
Anxiety is highest among homeowners who locked in during 2021 and 2022, when the Bank of Canada's overnight rate sat at just 0.25 per cent.
Those borrowers are now confronting renewal rates that, while lower than the 2023 peak, remain substantially above where they started. Approximately 12 per cent of all outstanding Canadian mortgages originated during the pandemic era, according to the Bank of Canada's Households, Financial Stability Report — 2026, published in May 2026.
Of those expecting higher payments at renewal, 76 per cent say it will strain household finances with 46 per cent characterising the strain as slight and 30 per cent as significant. In response, 58 per cent of affected borrowers plan to cut discretionary spending, 48 per cent will scale back travel, and 38 per cent are delaying or cancelling home renovation projects.
Still, the majority (71 per cent) say they are not considering any changes to reduce their housing costs. Among the 22 per cent who are, just seven per cent are exploring relocation to more affordable regions, five per cent are considering renting out part of their home, and five per cent are weighing downsizing.
Regional variations paint a mixed picture
The financial pressure is not evenly distributed across the country. Saskatchewan and Manitoba show the highest proportion of borrowers expecting payment increases, at 43 per cent, while Alberta sits at the opposite end at 29 per cent. Ontario, Quebec, and Atlantic Canada each come in at 39 per cent, with British Columbia at 37 per cent.
Adil Dinani, sales representative and team lead of the Dinani Group at Royal LePage West in Greater Vancouver, noted that anxiety tends to run higher in British Columbia given the scale of outstanding balances. "Anxiety around mortgage renewals tends to be greater in British Columbia because outstanding mortgage balances are often much larger," he said.
Conversely, conditions in other markets have proven more stable than expected. Sean Broady, a certified real estate broker at Royal LePage Altitude in Montreal, said the anticipated correction did not arrive. "The mortgage renewal crisis and subsequent market correction many anticipated has not become a reality in Montreal."
Delinquencies rising but remain historically low
National mortgage delinquency data from the Canada Mortgage and Housing Corporation's Residential Mortgage Industry Report Spring 2026 Edition, published May 12, 2026, shows the 90-days-or-more past due rate rose from 0.21 per cent in the fourth quarter of 2024 to 0.24 per cent in the fourth quarter of 2025. In Toronto, the rate moved from 0.20 per cent to 0.29 per cent over the same period.
Eight per cent of current-term borrowers extended their amortisation period to lower monthly payments, and six per cent missed or deferred at least one payment. Of that latter group, 19 per cent fell 90 or more days into arrears.
Soper drew a clear distinction between these numbers and a systemic crisis. "There is a meaningful difference between a household adjusting its budget and a household in financial distress. Most homeowners facing renewal are deciding how to fit a higher payment into their budget, not whether they can afford to keep their home."
Borrowers weigh their options
When it comes to product choice at renewal, uncertainty is high. While 70 per cent of borrowers currently hold fixed-rate mortgages, only 43 per cent plan to renew into fixed terms — with 39 per cent still undecided. Sixteen per cent intend to switch to variable.
On the lender side, 49 per cent plan to stay with their current provider, while 44 per cent intend to shop around.
The mortgage stress test, updated by the Office of the Superintendent of Financial Institutions in January 2026, requires borrowers to qualify at the greater of their contract rate plus two percentage points, or 5.25 per cent — a measure that has softened the blow for many households that would otherwise have stretched beyond their means.
Tom Storey, sales representative and head of The Storey Team at Royal LePage Signature Realty in Toronto, credited the stress test with limiting damage. "Many feared that mortgage renewals in this period would be significantly worse for a lot more Canadians. The reality is much less scary."
