Mortgage shock: Thousands brace for financial strain as renewal costs surge with 73% of Canadians planning to cut back on spending, again

Cutting back to keep up

More than half of surveyed homeowners expect their living situation to change in the face of rising costs. A striking 73% say they'll need to cut back on spending to keep up with higher mortgage payments. Despite some recent downward trends in interest rates, they remain well above the historic lows that defined Canadian mortgages for over a decade.

With nearly a quarter of respondents set to renew their mortgage within the next year, belt-tightening is becoming a necessity rather than a choice:

• 43% will delay renovations
• 29% may sell their home or move to something more affordable
• 15% are considering taking on a roommate to share expenses
• 15% might move to a different neighbourhood altogether

The pressure isn’t just on current homeowners. Among prospective buyers, 55% are already slashing non-essential spending, while 31% say they plan to cash out existing investments in order to secure a property. The fear of being locked out of homeownership entirely is forcing tough decisions well before keys are even in hand.

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Seeking safety in certainty

With uncertainty dominating economic headlines, it’s no surprise that 75% of those nearing a mortgage renewal are choosing fixed rates over variable. Locking in a predictable payment provides a sense of control in a market that feels anything but stable.

"While our survey found that 75% of those preparing to renew their mortgage this year are leaning towards a fixed instead of a variable rate mortgage, it's important to remember that there isn't a one-size-fits-all approach to choosing what will work for you," Patrick Smith, TD’s vice-president, product management, real estate secured lending, said in a statement.

Urgency meets uncertainty

Buying or renewing a mortgage has always been a major life decision. But today, the stakes feel higher than ever. Nearly 40% of prospective buyers say that fast access to professional advice would make them feel more confident navigating this volatile housing market.

“As Canadians navigate a dynamic economy that seems to be evolving daily, we understand how challenging it can be for them to know if they're making the right decision when it comes to real estate,” Smith said. “Different factors can impact each individual's home buying decisions in unique ways.”

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Bottom line

The Canadian dream of homeownership is under pressure. Whether renewing or buying, many Canadians now find themselves calculating more than just square footage and location — they're calculating how much financial risk they can tolerate. And in a time of soaring costs and shifting markets, that calculation is only getting more fraught.

Survey methodology

The TD Bank Group survey was conducted by The Harris Poll Canada from April 10 to 18, 2025, with 890 randomly selected Canadian homeowners and 881 randomly selected Canadians planning to buy a home within the next five years. A minimum of n100 respondents were surveyed in B.C., Alberta, Saskatchewan & Manitoba, Ontario, Quebec and Atlantic Canada for each audience (homeowners and prospective buyers) to allow for comparisons between the regions. The data has also been weighted on age, gender and region to match the 2024 instance of this study to allow for year-on-year comparisons.