The final group of borrowers who secured ultra-low mortgage rates during the pandemic is beginning to renew, and 38% of Canadians with a mortgage on their primary residence expect their payments to increase. In Toronto, that figure rises slightly to 39%.

While higher monthly payments will place additional pressure on household budgets, most homeowners are not anticipating a change in where or how they live. Seventy-one per cent of those approaching renewal say they do not plan to move, rent out their home or downsize. Instead, many expect to reduce discretionary spending, travel less or postpone renovations. For most homeowners, higher carrying costs are prompting financial adjustments rather than an immediate change in housing. Home remains a priority, even when maintaining it requires compromises elsewhere in the household budget.

The impact of higher borrowing costs, however, extends beyond the mortgage payment itself. Postponed renovations, reduced discretionary spending and changing monthly obligations can influence when a homeowner chooses to move, how much a buyer can comfortably afford and how existing home equity factors into longer-term plans.

For buyers, this makes understanding the financial picture before beginning a search increasingly important. Purchase price is only one part of that equation. Mortgage structure, monthly carrying costs and future financial flexibility all contribute to determining what is both affordable and sustainable.

For homeowners approaching a renewal, it can also be an appropriate time to consider the larger picture. Understanding the current value of the property, the equity that has been built and how well the home continues to suit future plans can provide useful context before making longer-term financial decisions.

Despite earlier concerns that pandemic-era mortgage renewals could result in a significant increase in defaults, serious mortgage delinquency remains relatively low. Canada’s 90+ day delinquency rate was 0.24% in the fourth quarter of 2025, remaining below pre-pandemic levels.

The numbers suggest that Canadian homeowners are adapting to a different borrowing environment. Higher mortgage payments are undoubtedly changing household finances, but for many, the response is not necessarily to change homes. It is to reassess priorities, understand their financial position and make more deliberate decisions about what comes next.