In the province of Ontario, 58 per cent of homeowners whose mortgages are renewing in 2025 expect their monthly mortgage payment to increase upon renewal (35% expect it to increase slightly and 23% expect it to increase significantly).

Of those who expect their monthly mortgage payment to rise upon renewal, 81 per cent say the increase will put financial strain on their household. Among them, 55 per cent of respondents say they will reduce or eliminate discretionary spending to help cope with the impact of increased monthly mortgage payments; 46 per cent say they will reduce or eliminate travel; and 39 per cent say they will reduce or eliminate saving or investing. Respondents were able to select more than one answer.

“When faced with higher mortgage payments at renewal, homeowners typically fall into two categories: those with primary residences, who adjust their budgets and make financial sacrifices to absorb the increased costs, and investors, who take a business-minded approach and are willing to sell a real estate asset if rising monthly expenses cut too deeply into their returns,” said Tom Storey, sales representative and head of The Storey Team, Royal LePage Signature Realty in Toronto. “Some mortgage holders with higher renewal rates will need to make lifestyle adjustments, such as cutting back on travel or dining out, while others may need to take more drastic measures, like extending their amortization period to its original term, to reduce their monthly payments and manage the increased costs.”

Storey noted that many move-up buyers are strategically timing their next home purchase around their upcoming renewal, weighing whether to wait out their current mortgage term before upsizing or renew early.

According to the survey, 71 per cent of Ontarians with a mortgage renewing this year currently hold a fixed-rate mortgage, while 27 per cent have a variable rate. When asked what type of mortgage they plan to obtain upon renewal, 64 per cent say they will opt for a fixed-rate loan, while 31 per cent say they will choose a variable-rate mortgage. Respondents in this region were among the most likely to say they plan to obtain a variable-rate mortgage upon renewal. Thirty-six per cent of all respondents in the province say they plan to obtain a five-year mortgage term upon renewal, followed by 19 per cent who plan to sign on to a three-year term.

“Fixed-rate mortgages have historically been the most popular option among Canadians, and as their loans come up for renewal, I expect many will make the same choice. This product has provided financial stability during the rate rollercoaster of the past few years. First-time buyers, however, tend to be the ones opting for variable-rate loans today, prioritizing affordability over predictability,” said Storey. “When you receive a mortgage renewal notice from your lender, it’s best not to accept the first offer outright. Instead, explore alternative payment plans and compare options from different financial institutions to secure the best deal. With stress testing no longer required for uninsured borrowers switching lenders at renewal, Canadians now have more flexibility.”