{"id":10475,"date":"2025-02-20T19:08:17","date_gmt":"2025-02-20T19:08:17","guid":{"rendered":"https:\/\/finderica.com\/?p=10475"},"modified":"2025-02-20T19:08:17","modified_gmt":"2025-02-20T19:08:17","slug":"homeowners-expect-monthly-mortgage-payments-to-rise-upon-renewal-in-2025-survey","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=10475","title":{"rendered":"Homeowners expect monthly mortgage payments to rise upon renewal in 2025: survey"},"content":{"rendered":"
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By Sammy Hudes<\/strong><\/p>\n

A Royal LePage survey released Thursday, conducted by Hill & Knowlton, said 57% of Canadians set to renew a mortgage on their primary residence this year expect their monthly payment to increase.<\/p>\n

That includes 22% who expect it to rise \u201csignificantly\u201d and 35 per cent who think their payment will go up \u201cslightly.\u201d One-quarter said their monthly mortgage payment will remain about the same and 15% expect it to decrease upon renewal.\u00a0<\/p>\n

Royal LePage said 1.2 million mortgages are up for renewal in 2025. Around 85% of those were secured when the Bank of Canada\u2019s key policy rate sunk to historically low levels \u2014 at or below one per cent \u2014 during the COVID-19 pandemic.<\/p>\n

\u201cWe\u2019re now five years from when those mortgages first became available so we\u2019re getting those rolling over,\u201d said Royal LePage president and CEO Phil Soper in an interview.<\/p>\n

\u201cWhile rates have been coming down rapidly, they\u2019re still well above what those super low pandemic mortgages were and people are concerned.\u201d<\/p>\n

Among those who expect their monthly payment to rise, 81% said the increase would put financial strain on their household. Many of those said they will reduce discretionary spending such as on restaurants and entertainment, or cut back on travel to help cope with the increased costs.<\/p>\n

Meanwhile, 10% of respondents said they are considering downsizing, relocating to a more affordable region or renting out a portion of their home in response to higher borrowing costs.<\/p>\n

Soper said a potential trade war with the U.S., and the harm the Canadian economy could endure from President Donald Trump\u2019s threat of 25% tariffs, is adding to Canadian homeowners\u2019 anxiety.<\/p>\n

However, he said the Bank of Canada could loosen monetary policy in response to tariffs in order to ease the burden on the economy.<\/p>\n

\u201cWe\u2019ll see rates dropping, and we potentially could see unemployment picking up,\u201d he said.<\/p>\n

\u201cWe could see GDP trending downward, and at the same time because our industry is so rate sensitive, all that pent-up demand we have from the post-pandemic market correction \u2026 could be unleashed based on very low borrowing costs.\u201d<\/p>\n

While most households with pending renewals plan to maintain the same type of mortgage product they have, the report said more Canadians are exploring the option of signing variable-rate mortgages.<\/p>\n

Around two-thirds of respondents with a mortgage renewing this year said they plan to obtain a fixed-rate loan upon renewal, down from the three-quarters who currently have fixed-rate mortgages. Around 29% said they will choose a variable-rate loan, up from the 24% who currently have variable-rate mortgages.<\/p>\n

Around 37% of all respondents said they plan to go with a five-year mortgage term upon renewal, while 19% intend to sign on to a three-year term.<\/p>\n

Soper said Canadians tend to gravitate toward 5-year fixed-rate mortgages, but that option \u201cdoesn\u2019t always make sense.\u201d<\/p>\n

\u201cIf you\u2019re in a period of clearly declining interest rates, as we have been for about a year now, it really doesn\u2019t make a lot of logical sense to lock in for the longer term,\u201d he said.<\/p>\n

Last fall, Canada\u2019s national banking regulator announced it would no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers, as long as the amortization schedule and loan amount remain unchanged.<\/p>\n

While a six-month variable-rate mortgage might be more expensive in the short-term, Soper said some households might believe that option will be more affordable down the road, since they could be able to lock in a lower interest rate in the future.\u00a0<\/p>\n

\u201cYou have got to be able to afford the shorter-term variable-rate mortgage, but if you can, it\u2019s just making a lot of sense,\u201d he said.<\/p>\n

This report by The Canadian Press was first published Feb. 20, 2025.<\/em><\/p>\n

Visited 273 times, 273 visit(s) today<\/p>\n

consumer survey Hill & Knowlton mortgage market mortgage market trends mortgage renewals mortgages in canada Phil Soper Royal LePage Royal LePage survey sammy hudes tariffs The Canadian Press<\/p>\n

Last modified: February 20, 2025<\/p>\n<\/p><\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Sammy Hudes A Royal LePage survey released Thursday, conducted by Hill & Knowlton, said 57% of Canadians set to renew a mortgage on their primary residence this year expect their monthly payment to increase. That includes 22% who expect it to rise \u201csignificantly\u201d and 35 per cent who think their payment will go up<\/p>\n","protected":false},"author":1,"featured_media":10476,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[216],"tags":[903,1011,2688,417,474,336,125,171],"class_list":{"0":"post-10475","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mortgage","8":"tag-expect","9":"tag-homeowners","10":"tag-monthly","11":"tag-mortgage","12":"tag-payments","13":"tag-renewal","14":"tag-rise","15":"tag-survey"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/10475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10475"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/10475\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/10476"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}