New poll highlights how housing and debt pressures are grounding Canadians
Affordability worries that have defined the mortgage market in recent years also appear to be reshaping how Canadians approach their 2025 holiday plans, with many trading overseas trips for “homegrown holidays” as they navigate higher borrowing costs and tighter budgets.
The latest CIBC–Ipsos poll found that 79% of Canadians said travel has become less affordable over the past five years, while nearly two-thirds decided not to travel at all this holiday season, most often because they are watching their spending or prioritizing saving.
Among those who did intend to travel, younger Canadians – particularly Gen Z – are far more likely to do so than Boomers, although many were opting for domestic or even within‑province trips rather than heading abroad.
“Canadians are showing both resilience and adaptability this holiday season, and whether its travelling within the country or gathering at home, the focus is on connection, comfort, and making smart financial choices,” said Carissa Lucreziano, vice-president, financial planning and advice at CIBC.
“As Canadians navigate their holiday plans, we're here to help them celebrate and budget for what matters most.”
Canadians stay closer to home as costs bite
CIBC’s poll suggested that 62% of respondents did not plan to travel during the holidays, with 31% citing budget limitations and 22% saying they were prioritizing saving.
Only around 12% planned international trips, compared with 13% travelling within Canada and 19% staying within their own province.
In a separate Royal LePage survey, 60% of homeowners expecting higher payments at renewal said they would reduce discretionary spending, while 43% planned to cut back on travel to cope with increased costs.
Mortgage renewal wall looms over household budgets
Bank of Canada analysis indicated that about 60% of outstanding mortgages in Canada were expected to renew in 2025 or 2026, with many households likely to see their mortgage payments rise even as policy rates gradually eased from their peak.
For borrowers on five‑year fixed terms renewing in those years, the central bank estimated average payment increases in the range of 15%–20% compared with December 2024 levels.
Brokers describe renewal as a make‑or‑break financial event for many households, requiring careful cash‑flow planning and trade‑offs across the budget, from entertainment and travel to savings.
Opportunities for brokers in a cautious spending climate
While Canada’s overall debt‑service ratio remains below its 2023 peak, mortgage payments alone still accounted for nearly 8% of disposable income in early 2025 – close to a record high – with mortgages representing roughly three‑quarters of total household debt.
For brokers, the polling around holiday travel offers another signal that clients are already tightening belts ahead of looming renewals and potential payment shocks. The shift toward local travel, heavier use of reward points and a renewed focus on budgeting mean households are still spending, but with a sharper eye on risk and trade‑offs.
Discretionary categories like travel are often the first to be pared back, but those decisions are rooted in deeper concerns about housing costs, debt loads and renewal risk.
Brokers who engaged clients early – integrating mortgage planning with day‑to‑day budgeting decisions – stand to play an even more central role in how Canadians balance their homes, holidays and long‑term financial goals.
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