The Royal LePage 2025 Mortgage Renewal Survey includes insights into the hundreds of thousands of homeowners who will renew their mortgage this year – likely at a higher rate – and the impact increased borrowing costs could have on their household.
According to the survey, more than half (57%) of Canadians who are renewing the mortgage on their primary residence in 2025 expect their monthly mortgage payment to increase upon renewal. Meanwhile, 25 per cent say their monthly mortgage payment will remain about the same – within $100 of their current payment amount – and another 15 per cent expect their monthly payment to decrease upon renewal.
“When it comes to post-pandemic mortgage renewals, many Canadians have avoided the worst-case scenario of having to sell their homes due to the inability to cover the cost of their mortgage, thanks to solid employment trends and declining interest rates,” said Phil Soper, president and CEO, Royal LePage. “Nevertheless, some will face a substantial rise in their mortgage costs, putting added pressure on their household finances. Many in this situation are exploring options to lower their monthly fees, such as extending their amortization period; a tactic which has proven popular.”
Key highlights from the release include:
- 57% of Canadians whose mortgage is renewing in 2025 anticipate their monthly payment will increase, while 40% expect their payment will stay the same or decrease.
- Among those who expect their monthly payment to increase upon renewal, 81% say it will put financial strain on their household.
- 1 in 10 Canadians with a mortgage renewing in 2025 are considering downsizing, relocating to a more affordable region or renting out a portion of their home
- Respondents in the province of Quebec are least likely to expect increased monthly mortgage payments and financial strain upon renewal.
- More Canadians are looking to sign variable-rate mortgages upon renewal, as interest rates continue to decline.
- As the trade conflict between the United States and Canada intensifies, more aggressive rate cuts by the Bank of Canada are possible to stave off a potential recession.
