A Royal LePage survey launched Thursday, performed by Hill & Knowlton, mentioned 57% of Canadians set to resume a mortgage on their major residence this 12 months count on their month-to-month cost to extend. That features 22% who count on it to rise “considerably” and 35% who suppose their cost will go up “barely.” One-quarter mentioned their month-to-month mortgage cost will stay about the identical and 15% count on it to lower upon renewal. 

Nonetheless ready for the results of COVID to go

Royal LePage mentioned 1.2 million mortgages are up for renewal in 2025. Round 85% of these have been secured when the Financial institution of Canada’s key coverage fee sunk to traditionally low ranges—at or beneath 1%—throughout the COVID-19 pandemic.

“We’re now 5 years from when these mortgages first grew to become out there so we’re getting these rolling over,” mentioned Royal LePage president and CEO Phil Soper in an interview. “Whereas charges have been coming down quickly, they’re nonetheless nicely above what these tremendous low pandemic mortgages have been and persons are involved.”

What to anticipate for mortgage funds in 2025

Amongst those that count on their month-to-month cost to rise, 81% mentioned the rise would put monetary pressure on their family. Lots of these mentioned they are going to cut back discretionary spending similar to on eating places and leisure, or in the reduction of on journey to assist deal with the elevated prices. In the meantime, 10% of respondents mentioned they’re contemplating downsizing, relocating to a extra reasonably priced area or renting out a portion of their residence in response to larger borrowing prices.

Soper mentioned a possible commerce struggle with the U.S., and the hurt the Canadian economic system might endure from President Donald Trump’s menace of 25% tariffs, is including to Canadian owners’ anxiousness. Nonetheless, he mentioned the Financial institution of Canada might loosen financial coverage in response to tariffs in an effort to ease the burden on the economic system.

“We’ll see charges dropping, and we doubtlessly might see unemployment choosing up,” he mentioned. “We might see GDP trending downward, and on the similar time as a result of our business is so fee delicate, all that pent-up demand now we have from the post-pandemic market correction … may very well be unleashed primarily based on very low borrowing prices.”

Are Canadians choosing fastened or variable mortgages when renewing?

Whereas most households with pending renewals plan to keep up the identical kind of mortgage product they’ve, the report mentioned extra Canadians are exploring the choice of signing variable-rate mortgages. Round two-thirds of respondents with a mortgage renewing this 12 months mentioned they plan to acquire a fixed-rate mortgage upon renewal, down from the three-quarters who presently have fixed-rate mortgages.

Round 29% mentioned they are going to select a variable-rate mortgage, up from the 24% who presently have variable-rate mortgages. Round 37% of all respondents mentioned they plan to go along with a five-year mortgage time period upon renewal, whereas 19% intend to signal on to a three-year time period.