TORONTO, June 24, 2026 – One-third of mortgage holders expect to renew their loans within the next 12 months, and 67 per cent are concerned that new interest rates will increase their monthly payments, according to a survey released June 24 by Mortgage Professionals Canada. Recent first-time buyers, newcomer homeowners and families with limited cash reserves may not have enough time to complete refinancing reviews, property appraisals and related paperwork if they wait until their lender sends a renewal notice before comparing options.
The survey found that six per cent of mortgage holders are already struggling to afford their current payments. Another 44 per cent said they could face difficulty even if their monthly payments increased by less than 15 per cent. Among people who bought their first home within the past five years, 66 per cent were concerned about higher renewal rates. The proportion was 68 per cent among newcomer borrowers.
Some households are relying on income from renting out basements or rooms to keep up with housing payments. More than one-third of respondents said they need to rent out part of their home to cover housing expenses. Among newcomer respondents, 53 per cent had already rented out or planned to rent out part of their home. If that income is unstable, higher mortgage payments after renewal could place further pressure on food, transportation and child-care budgets.
The Financial Consumer Agency of Canada reminds homeowners that they do not have to renew automatically with their current lender. They can compare interest rates and conditions offered by other banks or mortgage brokers several months before their contracts expire. The renewal rate offered by an existing lender may not be the lowest available, and borrowers can use written offers from other providers to negotiate.
Moving a mortgage to a new lender involves more than comparing interest rates. The new lender will need to review the application again, and homeowners may need to pay discharge, transfer, administrative, property appraisal or legal fees. Increasing the mortgage amount or extending the amortization period may also affect mortgage insurance arrangements.
Homeowners seeking lower monthly payments may consider extending the amortization period, but this generally means taking longer to repay the loan and paying more interest overall. Borrowers planning to make additional payments or switch lenders before renewal should also review their prepayment privileges and penalties, as some charges may reach several thousand dollars.
The survey was released by an organization representing the mortgage industry and was conducted through an online questionnaire involving about 2,000 Canadians. It reflects respondents’ expectations and does not mean every borrower renewing a mortgage will experience the same increase. Homeowners can first ask their lender for their remaining principal, current amortization period and estimated monthly payments at different interest rates, and then compare refinancing costs rather than making a decision based only on the single payment figure shown in a renewal letter.（LJI by Yuanyuan）
