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Canadian homeowners approaching mortgage renewal are tightening their budgets and bracing for higher payments, even as early signs of buyer demand begin to re-emerge, according to a new survey from TD Bank.<\/p>\n
\u201cMortgage renewal can feel overwhelming and Canadians appear to be feeling that pressure,\u201d said Patrick Smith, vice-president of real estate secured lending at TD.<\/p>\n
More than half (56%) of homeowners expecting higher payments say they plan to cut back on spending, while 39% anticipate dipping into savings or reducing investments.<\/p>\n
More than two-thirds (67%) say they feel uneasy about their upcoming renewal as borrowers continue to face higher rates.<\/p>\n
In terms of product selection, the survey found borrowers are leaning toward stability, with nearly two-thirds (64%) planning to renew into a fixed-rate mortgage, most often choosing 5-year (30%) or 3-year (17%) terms.<\/p>\n
At the same time, borrower behaviour suggests many are still underestimating the complexity of renewal decisions. Just 9% say they plan to start the process earlier than usual, while 40% expect to shop around for a new lender.<\/p>\n
While existing homeowners retrench, prospective buyers are starting to show renewed interest. About 30% say they are more likely to purchase a home before the end of the year, citing lower home prices and stabilizing interest rates as key motivators.<\/p>\n
Affordability is still the biggest hurdle, and buyers are adjusting how they get there:<\/p>\n
Nearly half (48%) expect to put down less than 20%, which would a high-ratio mortgage that requires mortgage default insurance.<\/p>\n
There are also signs that financial literacy gaps could influence borrowing decisions. A majority of respondents (58%) report being unfamiliar with home equity lines of credit (HELOCs), despite their growing relevance in refinancing and debt management strategies.<\/p>\n
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Last modified: April 8, 2026<\/p>\n<\/p><\/div>\n