Mar 25, 2025
Despite the daily worries of escalating tariffs, economic recession, inflation and who knows what else, many Canadian homeowners don’t seem all that worried about keeping up. A new CIBC poll found the majority of mortgage holders feeling confident in their ability to handle their mortgage payments and make their budgets work.
"As mortgage rates are declining, it's encouraging to see that despite continued financial pressures, the majority of homeowners remain confident in their ability to manage their living expenses," Daniel Rethazy, CIBC senior vice-president of personal lending, said in a statement.
Advertisement
In fact, 64% of variable rate mortgage holders remain unaffected, reporting little to no impact on their standard of living, as do 59% of those expecting higher renewal rates.
How are Canadian homeowners navigating budget challenges?
It can be difficult enough managing a mortgage without the daily economic uncertainty that 2025 has wrought so far. Six in 10 homeowners renewing their mortgage in the next two years anticipate higher interest rates, with the average expected increase between 1% and 2%. Amidst this backdrop, mortgage holders have a number of key concerns:
- inflation and living costs (94%)
- broader economic conditions (89%)
- interest rates (85%)
- potential US tariffs (80%)
Concerns about election outcomes in Canada are not far behind at 70%.
Determined to make budgets work, over half of renewers expecting a higher rate are tightening their belts by opting for more affordable shopping options and cutting back on discretionary spending such as travel and entertainment.
Many are also shopping for better mortgage rates (42%), seeking additional income sources (24%) and making lump sum payments towards their mortgages (19%).
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
Homeowner attitudes in 2025
Given that uncertainty, it seems most homeowners are opting for the more concrete option when it comes to their mortgage. Nearly two-thirds (64%) of those renewing their mortgages in the next two years plan to secure fixed-rate mortgages, with 17% leaning towards variable rates and 19% remain undecided.
Amidst fluctuating interest rates, nearly two-thirds (64%) of Canadians with variable rate mortgages report little to no impact on their standard of living, while the remaining one-third experience moderate to severe financial strain.
Despite the housing crisis and current economic woes, 55% of Canadians are homeowners. Additionally, homeownership still remains a highly valued milestone, with 90% of homeowners expressing pride in their achievement.
Survey methodology
The findings come from an Ipsos poll of 1,500 Canadians aged 18 and above conducted online between Jan. 20 and 28, on behalf of CIBC.
Sources
1. Cision: Amid economic uncertainty majority of Canadian homeowners express confidence in managing mortgage payments and budgets (March 24, 2025)
You May Also Like
- Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
Managing Money • Mar 06
