We're now seeing the last wave of Canada’s pandemic-era low-rate mortgages come up for renewal—about 12% of all outstanding mortgages. If you locked in during 2021’s ultra-low rates, you might be facing some changes. According to a recent survey, 38% of borrowers expect their monthly payments to increase, while 31% anticipate little change and 17% are looking at a potential decrease. Most households are navigating these transitions well, and widespread defaults haven’t emerged, though it’s natural that about a third of borrowers are feeling more anxious than before. For those expecting higher payments, 76% say their household finances will be under more pressure, but interestingly, 71% still plan to keep their current living arrangements. When it comes to renewal choices, 43% are leaning toward a fixed rate, 39% want to review all their options, and 49% intend to stay with their current lender. With over 20 years of lending and underwriting experience and thousands of deals financed, I’ve seen how important it is to tailor solutions to each situation. If you’re facing renewal, understanding your options is key to managing these changes confidently.
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