Almost half of all Canadians who renewed their mortgages this year have seen housing costs balloon to more than half their paycheque, a new survey by rate comparison website Rates.ca has found.
Canada is in the midst of its largest wave of mortgage renewals, with many Canadians seeing their housing budgets go up.
Borrowing costs have gone up for 82 per cent of Canadians whose mortgages were renewed since January, a survey commissioned by Rates.ca and conducted by Leger from July 24 to 26 found.
Most people saw their mortgage rates rise between two and 4.99 per cent, the survey said.
Nearly half (45 per cent) of households that renewed their mortgage say those payments now consume half or more than half of their entire household budget, it added.
Many financial institutions and experts say that the share of housing costs should not exceed 30 per cent of your household budget, including utilities.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
“No more than 30% to 32% of your gross annual income should go to mortgage expenses, such as principal, interest, property taxes, heating costs and condo fees,” the Royal Bank of Canada says on its website.
“These findings show just how little financial flexibility some homeowners have after renewing,” said Victor Tran, Rates.ca mortgage and real estate expert.
“When half or more of a household’s monthly budget is going toward the mortgage, there’s much less room to absorb other expenses or an unexpected financial setback,” Tran added.
While mortgage costs rose across the board for most Canadians renewing this year, younger homeowners were hit the hardest.
Nine in 10 homeowners (90 per cent) aged between 18 and 34 years renewed their mortgages at a higher rate, with 56 per cent of those saying their housing costs now account for 50 to 70 per cent of their household budget.
Foreign-born homeowners had a similar proportion (50 to 70 per cent) of housing costs to household budgets, compared to Canadian-born owners (35 per cent).
Four in 10 (40 per cent) of all homeowners who renewed this year chose to lock in their mortgage for five years, while 35 per cent chose three-year terms. Only seven per cent locked in their mortgage for more than five years, the survey found.
Homeowners should start shopping ahead of their expected renewal date, Tran said.
“Homeowners approaching renewal should start reviewing their options at least 120 days in advance, giving them time to shop around and consider the rate, term, amortization and flexibility that best fit their budget,” he said.
© 2026 Global News, a division of Corus Entertainment Inc.