Renewed but not relieved: Canada’s mortgage budget squeeze deepens
“These findings show just how little financial flexibility some homeowners have after renewing,” said Victor Tran, mortgage and real estate expert at Rates.ca.
“When half or more of a household’s monthly budget is going toward the mortgage, there’s much less room to absorb other expenses or an unexpected financial setback. That’s why homeowners approaching renewal should start reviewing their options at least 120 days in advance, giving them time to shop around and consider the rate, term, amortization and flexibility that best fit their budget.”
Sarah Albert of Premiere Mortgage Centre says refinances, debt consolidation, and proactive planning are helping many borrowers manage higher renewal rates while keeping monthly budgets on track.https://t.co/2Gkw9kTE2e
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 7, 2026
Younger and immigrant homeowners squeezed hardest
Of homeowners aged 18 to 34 who renewed at a different rate, 90% saw their rate rise. More than half, or 56%, now report their mortgage consuming 50% to 70% of their monthly budget, with an additional 6% saying it surpasses 70%.
Canadians born outside the country are facing comparable pressure. Eighty-five percent who renewed at a different rate saw costs rise, and 56% say housing payments now account for 50% to 70% of their income, compared with 35% of those born in Canada.
Among lower-income households earning between $60,000 and $100,000, 54% report their mortgage consuming 50% to 70% of their monthly budget. Those earning under $60,000 are more exposed still — 8% say more than 70% of their budget goes to housing.
