Aug 9, 2026
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Add us on GoogleFor many Canadian homeowners, the biggest challenge is no longer renewing their mortgage — it’s adjusting to the higher monthly payment that comes afterwards.
A new Canada Mortgage and Housing Corporation (CMHC) Mortgage Consumer Survey found homeowners who renewed their mortgage over the past year saw their monthly payments increase by an average of $375. While many have adjusted to those higher costs, nearly one in three (31%) say they’ve had to cut back on other spending to make room in the household budget.
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“Mortgage consumers are proactively adjusting their monthly budgets to ensure they are better positioned to navigate their mortgage journey,” said Sam Carnovale, CMHC’s director of Lender Relations, in a statement.
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Higher mortgage payments are changing household budgets
According to the survey, homeowners are making trade-offs well beyond their mortgage payment.
Among those who said they’ve adjusted their spending, the most common areas to cut back were discretionary expenses such as dining out, entertainment, vacations and shopping.
Even so, there’s some evidence households are becoming more comfortable with their financial situation. The share of homeowners concerned about making their mortgage payments fell to 39%, down from 53% in CMHC’s previous survey.
That improvement suggests many borrowers have successfully adapted after renewing into higher rates, even if it has required changes to their day-to-day spending habits.
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Renewals remain one of the biggest financial hurdles
Millions of Canadians have renewed, or will soon renew, mortgages that were originally signed when borrowing costs were much lower.
For many households, the result has been a significant jump in monthly housing costs.
The survey found homeowners who renewed within the past year experienced an average monthly payment increase of $375, illustrating how the higher interest-rate environment continues to affect household finances even as the Bank of Canada’s policy rate has stabilized.
The survey also highlights the challenges facing Canadians trying to enter the housing market.
Recent homebuyers reported taking an average of 4.4 years to save for a down payment. Nearly one-quarter (23%) also received financial assistance from family members, with the median gift amount reaching $30,000.
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Those figures underscore the continued affordability pressures facing first-time buyers, many of whom are balancing higher home prices with elevated borrowing costs.
Canadians remain optimistic about homeownership
Despite the financial challenges, most Canadians still believe buying a home is worthwhile over the long term.
According to the survey, 81% of respondents said homeownership remains a good long-term investment, even as expectations for rapid home price growth have moderated.
The findings echo recent Statistics Canada data showing shelter costs continue to account for one of the largest components of household spending, even as overall inflation has eased in recent years. Statistics Canada has also reported that mortgage interest costs remain significantly higher than they were before the Bank of Canada’s rate-hiking cycle began, although year-over-year increases have continued to slow.
For homeowners, the message is a familiar one. The uncertainty surrounding mortgage renewals may be fading, but many households are still adjusting to the higher costs that came with them — often by finding savings elsewhere in the family budget.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
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