Younger borrowers and newcomers are driving a wave of lender switching and refinancing
More than half of Canadian mortgage holders are now considering switching lenders or refinancing when their mortgage is up for renewal, according to a new Equifax Canada survey. The results point to a clear generational split in how borrowers view credit, and show that lenders are under growing pressure to offer better support.
The survey gathered insights from 1,512 Canadians aged 18 and older between August 15 and 18. It found that 56% of mortgage holders would consider refinancing with a different lender when their mortgage comes up for renewal.
Among Canadians under 35, 57% indicated they would switch financial institutions if it meant better tools for building and monitoring credit, compared to just 38% of those aged 35 and older.
“Younger adults are looking for tools to monitor and strengthen their credit health. They are also more open to changing lenders if they believe that their needs aren’t met,” said Julie Kuzmic, senior compliance officer, consumer advocacy at Equifax Canada.
Borrowers want more proactive support
Credit access and support remain top priorities for borrowers. Forty percent (40%) of respondents felt their current bank or lender could do more to proactively support their changing credit needs, such as adjusting credit limits or offering new solutions. “Being proactive about protecting your credit and understanding how it affects your financial options is essential in today’s economy,” Kuzmic said.
The survey also found that nearly two-in-five mortgage holders (41%) had considered switching lenders in the past year, and a similar proportion (38%) reported receiving refinancing offers from other financial institutions.
Generational and newcomer differences shape credit needs
Among newcomers to Canada, 55% had considered switching providers, and 53% had received refinancing or new mortgage offers. Moreover, sixty-two percent of younger mortgage holders planned to explore refinancing elsewhere at renewal, compared to 52% of those aged 35 and up. The Bank of Canada says about 60% of Canadian mortgage holders renewing this year and in 2026 will face payment increases.
Generational and newcomer differences were also apparent in credit access. While 72% of Canadians aged 35 and older said they currently had sufficient access to credit, only 62% of those under 35 agreed. Younger Canadians were more likely to expect their credit needs to change in the next two to three years (58% vs. 40% for older Canadians). Among newcomers, 84% cited access to credit as important for meeting their goals, compared to 78% of Canadian-born respondents.
Despite these challenges, the vast majority, or 97% of Canadians said protecting their credit and identity was very important. “Canadians overwhelmingly see credit and identity protection as essential to reaching and safeguarding their financial goals,” Kuzmic added.
Brokers urge clients to ‘right-size’
Rising interest rates and tighter lending criteria are prompting more consumers to shop around at renewal and seek out alternative lenders for better terms or more flexible credit solutions. According to Tracy Valko, founder and CVO at Valko Financial, mortgage brokers have a responsibility to have hard conversations and see whether it might make sense for clients to “right-size.”
“It’s a mindset for people who are already stressed: ‘Let’s talk about right-sizing to where you’re at right now with your income. Let’s alleviate all this debt by paying it off when you sell your home and then start again with a minimum downpayment – just a smaller home,’” she told Canadian Mortgage Professional.
