New Leger survey reveals how deeply mortgage renewals are cutting into Canadian household budgets
Nearly half of Canadian homeowners who have renewed their mortgage since January 2025 now direct 50% or more of their monthly budget toward housing costs, according to new survey data.
The findings come from a Rates.ca survey conducted by Leger, a Canadian-owned full-service market research firm, which polled 1,516 Canadians aged 18 and older between July 24 and 26.
Among homeowners who renewed at a different rate since January 2025, 82% saw their borrowing costs rise, with the most common increase falling between 2% and 4.99%.
"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.
“With a lot of the borrowers that are still experiencing those payment shocks, there’s much less leeway for certain pockets of borrowers because [more of] that disposable income is being eaten up by your mortgage,” Carl De Souza, senior vice president and sector lead for North American financial institution ratings at Morningstar DBRS in Toronto, previously told Canadian Mortgage Professional.
“There’s less for credit cards. There’s less for auto loans. There’s less for your unsecured lines of credit. There’s less for big car repairs and big housing repairs.”
How borrowers are choosing their terms
On term selection, borrowers remain broadly split. Of those who renewed at a different fixed rate, 40% chose a five-year term while 35% opted for three years. Just 7% locked in beyond five years.
The demographic divergence is notable. Homeowners aged 18 to 34 were more likely to select longer terms — 13% chose fixed rates exceeding five years, versus just 1% of those aged 35 to 54.
Meanwhile, 15% of homeowners born outside Canada chose terms shorter than three years, compared with 7% of those born in Canada, suggesting greater caution among newcomers when navigating ongoing rate uncertainty.
The advisory demand created by these pressures continues to reshape the broker channel. Brokers have been at the centre of some of the most financially consequential conversations their clients have faced in a generation.
The share of Canadians obtaining their mortgage through a broker climbed to 38% in 2026, up six percentage points from the prior year, according to Mortgage Professionals Canada.
Not all renewers came out worse: 13% of those whose mortgage rate changed at renewal secured a lower rate — a reminder that preparation, timing, and lender selection remain the variables brokers are best placed to influence.
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