A new TD survey finds nearly half of upcoming renewers (45%) expect higher monthly payments, and 57% say it’ll impact how they live. Among those feeling the squeeze, 73% plan to cut back on day-to-day spending just to keep up.
The findings come despite a significant easing in borrowing costs. Since initiating its rate-cutting cycle in June 2024, the Bank of Canada has lowered its policy rate by a total of 225 basis points, bringing it down from 5.00% to 2.75%. Still, rates remain well above the pandemic-era lows at which many borrowers originally secured their mortgages that are now coming up for renewal at much higher rates.
“While our survey found that 75% of those preparing to renew their mortgage this year are leaning towards a fixed instead of a variable rate mortgage, it’s important to remember that there isn’t a one-size-fits-all approach,” said Patrick Smith, TD’s VP of Real Estate Secured Lending.
Many say they’re rethinking their financial plans as they approach their renewal. Among those set to renew:
- 43% are pausing renovations;
- 29% may sell or downsize;
- 15% are considering a roommate;
- 15% may move to a different neighbourhood.
First-time buyers are making sacrifices too
Prospective buyers are feeling the pressure as well, with more than half (55%) cutting non-essential expenses to save for a home, while nearly a third (31%) are dipping into their investments, including TFSAs, RRSPs or First Home Savings Accounts.
Yet, only 35% have sought out homeownership advice—despite 39% saying faster access to it would boost their confidence.
“As Canadians navigate a dynamic economy that seems to be evolving daily, we understand how challenging it can be… to know if they’re making the right decision when it comes to real estate,” Smith said.
Buying a home remains an emotional rollercoaster
Beyond the numbers, the survey revealed the emotional toll of homebuying.
Nearly half of prospective buyers reported feeling stressed (45%) or anxious (38%), though others said the process brought excitement (34%), hope (33%) and optimism (32%).
The survey, conducted in April by The Harris Poll for TD, included 890 homeowners and 881 prospective buyers across Canada. The results were weighted to match previous survey waves and have a margin of error of ±3.3%, 19 times out of 20.
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Last modified: June 5, 2025
