Canadians Face Payment Shocks as Nearly $900B in Mortgages Come Up for Renewal
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Nearly $900 billion of Canadian mortgages face renewal and potential payment shocks from 2024-2026 as interest rates rise.
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Payment increases could range from 32% on average next year up to 76% for some variable rate mortgages renewing in 2026 if rates stay around 6%.
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Even if rates fall to 0.25%, average payment increases would still be 20% in 2026.
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Banks are working to help borrowers by increasing payments gradually or extending amortization periods.
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Households are already reducing spending, with 60% of Bank of Canada survey respondents cutting back.