Thousands of Canadians are gearing up for their mortgage renewals—and many are already feeling the pressure. With interest rates still far from the record lows we saw before 2022, monthly payments are expected to rise. As a result, homeowners and prospective buyers alike are adjusting their spending habits to stay ahead of the financial hit.
💸 Budget Cuts Are on the Table
According to a recent TD Bank survey, 73% of homeowners say they’re planning to cut back on spending as they anticipate costlier renewals. Nearly half expect their mortgage payments to go up, and many are making serious lifestyle changes to prepare.
Some of the most common adjustments include delaying renovations, downsizing, or even moving to a more affordable area. In fact:
- 🔨 43% plan to put home upgrades on hold
- 🏘️ 29% are considering selling or downsizing
- 🛏️ 15% are open to getting a roommate
- 📦 15% might relocate to cheaper neighbourhoods
These decisions aren’t easy, but they reflect how significantly the rising cost of borrowing is reshaping household finances.
🛍️ Even Future Buyers Are Feeling the Pinch
It’s not just current homeowners feeling the strain—prospective buyers are also taking steps to reduce expenses. Over half (55%) of future homeowners say they’re already cutting non-essential spending, and 31% are thinking about cashing in investments just to afford a home.
This highlights how affordability challenges are not limited to those renewing their mortgage—new buyers are also being forced to make tough choices.
🔒 Most Canadians Are Saying Yes to Fixed Rates
With the market still volatile and the economy full of question marks, three out of four Canadians renewing their mortgage this year are choosing fixed rates over variable ones. Locking in a predictable rate offers peace of mind for many who don’t want to gamble with monthly payment fluctuations.
But fixed rates aren’t always the best option for everyone. “There’s no one-size-fits-all solution,” explains Patrick Smith, TD’s Vice President of Product Management for Real Estate Secured Lending. “Each homeowner’s situation is unique, and what works for one person may not work for another.”
😰 What’s Worrying Canadians the Most?
When asked about their biggest concerns in today’s market, Canadians pointed to affordability and uncertainty. The top financial worries included:
- 💵 Saving for a down payment (45%)
- 💳 Understanding how much they can actually afford (43%)
- 📆 Managing monthly mortgage payments (42%)
- 🔍 Finding a competitive interest rate (42%)
🧑💻 Younger Buyers Feel Lost in the Process
Younger generations, particularly Gen Z and Millennials, are feeling the weight of uncertainty more than most. Around 25% of Gen Z and 23% of Millennials admitted they don’t know where to start when it comes to homebuying. On top of that, about 1 in 5 say they lack a trusted source for advice, which adds to their stress and hesitation.
“As Canadians navigate a dynamic economy that seems to be evolving daily,” says Smith, “we understand how challenging it can be to feel confident about real estate decisions.”
📝 Survey Snapshot
This national survey was conducted by The Harris Poll on behalf of TD Bank in April 2025. It gathered responses from 890 current homeowners and 881 prospective buyers, with at least 100 participants surveyed in each region of Canada.
📌 The Bottom Line: Whether you’re renewing your mortgage or buying your first home, it’s clear that many Canadians are feeling the pressure. But you’re not alone, and you don’t have to figure it out by yourself.
💬 At Go Approval, we’re here to guide you through every step. From understanding your renewal options to finding a strategy that fits your budget, we’ve got your back. Reach out to us anytime and let’s talk about how we can help you stay in control and move forward with confidence.