Between 2.1 and 2.4 million Canadian households are renewing in 2025–2026, representing about 60% of all mortgages, with many seeing 6–20% payment increases and some up to 40%.

A fixed-rate borrower who locked at around 1.4% in 2020 and renews near 3.9–4.0% today can see annual payments rise by nearly $7,000, which is a serious squeeze for middle- and upper-middle-income households. This pressure is already increasing listings from owners who prefer to sell rather than absorb the shock, contributing to higher inventory in markets like Brampton (buyers’ market with increasing stock) and keeping Peel prices below last year’s levels.

Source: https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/

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