Mortgage renewals will strain Canadians, but most will manage: TD report
TORONTO — A report by TD Bank suggests mortgage renewals are expected to strain Canadian households, but most borrowers will manage albeit with less financial flexibility.
The report by economist Maria Solovieva says households who locked in their mortgage for five years in 2020 during the pandemic when interest rates were low are now renewing at much higher rates and will see higher payments.
But she says those who took out short-term mortgages last year when rates were high are renewing at much lower rates this year and can expect a drop in payments.
That means in aggregate mortgage payments in Canada are actually trending lower, Solovieva writes.
So long as rates continue to decline, especially at the long end, national mortgage payments should remain manageable, the report says.
But Solovieva notes that the picture for non-mortgage borrowers is more concerning with delinquency rates in this segment climbing.
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This report by The Canadian Press was first published July 9, 2025.
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