Default concerns among Canadian mortgage consumers dropped in 2026, but a third of renewers are still absorbing steep monthly payment increases
Canadian mortgage consumers entered 2026 with greater financial confidence than a year ago, though a significant share are still tightening their household budgets to stay on top of rising payments, according to the latest annual Mortgage Consumer Survey from Canada Mortgage and Housing Corporation (CMHC).
The survey, which polled more than 4,100 Canadians who completed a mortgage transaction in the 18 months prior to February 2026, found the proportion of respondents concerned about defaulting on their mortgage fell to 39% from 53% in 2025.
That's a 14-percentage-point improvement that suggests the worst of pandemic-era payment shock may be easing.
A large majority, 81%, continue to view homeownership as a sound long-term financial investment, though fewer than last year — 68%, down from 74% — believe their home's value will climb over the next 12 months.
"Our survey results for 2026 show most Canadian mortgage consumers are confident about their recent mortgage transactions, well equipped to make important decisions, and have a strong understanding of what they can afford," said Sam Carnovale, CMHC's director of lender relations.
"Mortgage consumers are proactively adjusting their monthly budgets to ensure they are better positioned to navigate their mortgage journey."
Leah Zlatkin of LowestRates .ca said rising renewal costs are forcing many homeowners to reassess budgets earlier, noting that small rate increases can quickly reshape household finances.https://t.co/jTlMsFI7un
— Canadian Mortgage Professional Magazine (@CMPmagazine) May 18, 2026
Confidence up, but renewers face real payment pressure
The relief on default concerns does not tell the whole story for renewers, who represent the largest segment of mortgage activity and continue to be the hardest hit by the rate environment.
Of those who renewed, 35% reported increased financial pressure from interest rate changes, with monthly payments rising by an average of $375.
That strain has been especially acute in markets like Toronto and Vancouver, where borrowers who signed at pandemic-era lows face the sharpest increases.
Read more: CMHC: Renewal wave has peaked, but the storm isn't over yet
Ontario-based broker Michelle Campbell of Mortgage Architects previously told Canadian Mortgage Professional that many homeowners already anticipated a jump in payments and taken proactive steps to speak with a broker.
"If you really think about it, you've paid down your mortgage in those five years or three years and your income has likely gone up," Campbell said.
To manage, 31% of mortgage consumers said they have cut or plan to cut non-mortgage expenses — dining out, entertainment, travel and personal care topping the list.
Down payments take longer and family gifts grow in importance
The survey also illuminated the widening gap between aspiring buyers and homeownership entry.
First-time buyers now take an average of 4.7 years to save a down payment, with 27% receiving a financial gift — at a median value of $30,000 — to close the gap.
One in four of those gift recipients said they could not have purchased a suitable home without that support.
Meanwhile, the tentative affordability gains Canadian home buyers had accumulated through the early months of 2026 took a significant step backwards in April, as a combination of rising fixed mortgage rates and firming home prices made it harder to qualify for a mortgage in 12 of the country's 13 major markets.
The latest monthly Home Affordability Report from Ratehub.ca found that the best five-year fixed insured mortgage rate climbed from 3.79% in March to 4.04% in April. That's the first month in which the full weight of recent bond market pressure began to register for home buyers.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
