TD survey spotlights growing borrower unrest as higher payments loom
As interest rates remain above pre-2022 levels, many Canadian homeowners preparing for mortgage renewals are anticipating financial adjustments.
A recent TD Bank Group survey reveals that 45% of those set to renew within the next year expect their monthly mortgage payments to increase.
Although the Bank of Canada recently held its overnight rate steady at 2.75%, borrowing costs remain elevated. This continues to influence homeowner behaviour, with 57% of survey respondents saying their renewal could affect their living situation. Among those, 73% are preparing to reduce discretionary spending.
TD’s survey, conducted April 10–18, included responses from 890 homeowners. Nearly one-quarter indicated they are reassessing their overall financial strategies in light of upcoming renewals. Of those, 43% said they would postpone home renovations, 29% are considering downsizing or relocating to more affordable areas, and 15% are open to either moving to a different neighbourhood or living with a roommate to reduce housing costs.
TD vice president of product management Patrick Smith said most renewing borrowers—75%—are opting for fixed-rate mortgages, citing stability in repayment amounts as a key factor.
The pressure of renewals aligns with Royal LePage’s February projection that 1.2 million Canadian mortgages will mature in 2024. The volume of renewals, combined with relatively high interest rates, is prompting changes not only in how existing homeowners manage finances but also in how prospective buyers approach homeownership.
In a separate TD Bank survey of 881 individuals looking to purchase a home, more than half reported cutting back on non-essential spending to save for a down payment or other costs associated with buying a home.
Additionally, 31% of prospective buyers are considering liquidating existing assets—such as tax-free savings accounts, registered retirement savings plans, or first-time home savings accounts—to fund a purchase.
While some markets have seen declines in home prices, the overall environment remains shaped by higher financing costs and economic uncertainty. These factors continue to influence housing choices, from renewal decisions to strategies for entering the market.
What strategies are you considering for your mortgage renewal or home purchase? Share your insights in the comments.
