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.
“Mortgage renewal can feel overwhelming and Canadians appear to be feeling that pressure,” said Patrick Smith, vice-president of real estate secured lending at TD.
Renewal pressure still front and centre
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.
More than two-thirds (67%) say they feel uneasy about their upcoming renewal as borrowers continue to face higher rates.
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.
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.
Demand beginning to stir beneath the surface
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.
Affordability is still the biggest hurdle, and buyers are adjusting how they get there:
- 75% are actively saving for a down payment
- 48% are reducing discretionary spending
- 52% expect to rely on investment income
Nearly half (48%) expect to put down less than 20%, which would a high-ratio mortgage that requires mortgage default insurance.
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.
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Last modified: April 8, 2026