If you’re feeling anxious about the prospect of paying more to finance your home, you’re not alone. In fact, almost half of Canadian homeowners looking to renew their mortgages in the next year anticipate making larger monthly payments, according to a recent TD survey.

Many of the mortgages that are now up for renewal were taken out during the pandemic when interest rates reached the lowest point in recent history. Almost a quarter, 22%, of the Canadians surveyed said they will be renewing their mortgages in the next 12 months.

About 60% of all outstanding Canadian mortgages will renew in 2025 or 2026, according to the Bank of Canada, the country’s central bank.

While interest rates have declined over the past few months, they are still higher than they were a few years ago.

Higher rates affecting financial planning

The expectation of higher mortgage rates is changing how many Canadians polled are approaching their finances. In fact, close to three-quarters (73%) of those surveyed say they’re planning on cutting back expenses to meet their mortgage payments.

A large percentage of those surveyed, 43%, say they are considering putting a hold on home renovations. This finding comes alongside Statistics Canada data that shows residential renovation costs have increased in 2025 in most of Canada, except for Ontario which saw a slight decrease in pricing.

Meanwhile, 29% of the Canadians surveyed say they plan to sell their current home and move to a smaller house. Others are considering moving to a new, more affordable neighbourhood (15%), or sharing their home with a roommate (15%).

“The survey really highlights concerns many Canadians have about the cost of housing,” said Patrick Smith, VP, Product Management, Real Estate Secured Lending at TD.

In addition to facing the prospect of higher mortgage payments, many Canadians are also grappling with economic uncertainty at home and global instability abroad, which can increase financial anxiety.

While housing prices softened in many markets across Canada this year, prices are still considered to be high by many surveyed who are thinking about purchasing their first home. As a result, 55% of Canadians surveyed who are in the market for a new home are cutting back on unnecessary expenses to help fund their purchase.

Meanwhile, 31% of those same prospective buyers are thinking about cashing in current investments in their Tax-Free Savings Accounts, Registered Retirement Savings Plans, and First Home Savings Accounts, the survey found.

Fixed rate vs. variable rate mortgages

When it comes to deciding between a fixed rate or a variable rate mortgage, three-quarters of the Canadians surveyed said they were considering a fixed rate mortgage over a variable rate mortgage.

A fixed rate mortgage can offer homeowners security by locking in the interest rate for the entire term of the mortgage. So even if rates go up or down, the mortgage payments do not change.

Variable rate mortgages at TD, on the other hand, are based on the TD Mortgage Prime Rate. This rate can go up and down during the term of the mortgage. While the payments will remain the same, the amounts from each payment that go towards the principal and interest can vary.

“Buying a new home or renewing your mortgage can be overwhelming – and at TD our job is to help ease that stress by offering advice that is tailored to our customers,'' Smith said.

"For example, while variable rates may offer lower interest, a fixed rate might be a better fit for a first-time homebuyer or a family with a tight monthly budget who value predictable monthly payments. Someone nearing retirement, on the other hand, might want to prioritize flexibility. There’s no one-size-fits-all approach — we’re here to help you understand what could work best for you.”

Accessing advice

Although the home buying process can be complex, and sometimes stressful, only 35% of those surveyed have asked for advice about homeownership. At the same time, 39% of those surveyed said that having quick access to advice from a professional would make them more confident when it comes time for them to buy a home.

“We understand how challenging it can be to know if you’re making the right decision when it comes to real estate,” Smith said. “TD is here to help you make these important financial decisions with confidence.”

If you’re looking for help with your mortgage, please reach out to us for personalized, professional advice. Simply answer a few questions on the TD Mortgage Direct site, and you’ll be introduced to one of our TD Mortgage Specialists who will help you every step of the way.

About the TD Survey

This survey was undertaken by The Harris Poll Canada. It ran from the 10th to 18th of April 2025, with 890 randomly selected Canadian homeowners and 881 randomly selected Canadians planning to buy a home within the next 5 years. A minimum of 100 respondents were surveyed in British Columbia, 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. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±3.3% for each audience, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.