As the final group of homeowners who locked in ultra-low mortgage rates during the pandemic begins to renew, a new survey suggests most are finding ways to manage the higher monthly payments.
A Royal LePage report says mortgage delinquency rates in Canada remain remarkably low compared with other developed countries, although some households are feeling the squeeze from larger mortgage payments.
About 38 per cent of Canadians with a mortgage on their primary residence expect their payments to rise when they renew. Of those, 26 per cent expect a slight increase, while 12 per cent anticipate a significant jump, according to a survey conducted by WPP PLC-owned public relations company Burson and released Wednesday.
Concerns are even greater in Canada’s most expensive housing markets, with 39 per cent of Toronto homeowners and 45 per cent of those in Vancouver expecting higher payments.
Still, most homeowners approaching renewal said they are not planning to make major changes to their living arrangements. Seventy-one per cent said they would not relocate, rent out their home or downsize to deal with higher payments. More than half said they would cut back on discretionary spending, while close to half plan to spend less on travel. Another 38 per cent said they expect to delay or cancel home renovations.
While higher renewal rates are clearly a concern for many homeowners, the survey suggests households have so far been able to adjust to the increased monthly costs.
Eight per cent of respondents said they had extended their amortization period, while six per cent reported missing or deferring a mortgage payment at least once during their current term. Among those who missed a payment, 19 per cent said their mortgage had been in arrears for 90 days or more.
There had been concerns in previous years that a large wave of mortgage defaults could follow as borrowers moved from ultra-low rates to higher ones. But the mortgage stress test appears to have provided some protection, requiring borrowers to demonstrate they could handle payments above what they were taking on at the time.
The national 90+ day delinquency rate edged up slightly to 0.24 per cent in the fourth quarter of 2025, compared with 0.21 per cent a year earlier. However, it remained below pre-pandemic levels, according to the latest data from the Canada Mortgage and Housing Corporation.
Another factor helping homeowners is income growth. Wages have slightly outpaced inflation since 2021, meaning many homeowners are likely earning more today than when they originally took out their mortgage. At the same time, home prices are at the same level or lower, while interest rates are no longer particularly high. Current five-year fixed-rate mortgage rates are around four per cent.
The Bank of Canada has held its overnight lending rate at 2.25 per cent since October 2025. That remains well above the ultra-low 0.25 per cent rate seen during the pandemic but is below the five per cent level reached in 2023.
The survey was conducted by Burson using the Leger Opinion online panel. The poll included 1,127 Canadians and was conducted between July 20 and Aug. 6.
The Canadian Research Insights Council, an industry organization that promotes polling standards, notes that online surveys cannot be assigned a margin of error because they do not randomly sample the population.