New research from Canada Mortgage and Housing Corporation says a large wave of mortgage renewals at higher interest rates is reshaping household finances across the country, with uneven impacts by region and borrower type.
The federal housing agency says more than 1.5 million households have already renewed their mortgages at higher rates, with another million expected to do so this year, according to analysis released recently.
Mortgage arrears remain low
CMHC says mortgage arrears have risen during the renewal cycle but remain low by historical standards, a trend the agency attributes in part to borrowers taking steps to manage higher monthly costs.
The research notes that many households have extended their amortization periods at renewal to reduce near-term payment pressures, a factor CMHC says has helped limit delinquency rates despite higher borrowing costs.
“While most Canadians have been resilient in facing significantly higher interest rates at renewal, this comes at greater long-term expense, as the majority extended the length of their mortgages to lower their monthly payments and manage short-term household finances,” said Tania Bourassa-Ochoa, Deputy Chief Economist at CMHC.
Tania Bourassa-Ochoa, CMHC Deputy Chief Economist (CNW Group/Canada Mortgage and Housing Corporation (CMHC))
Regional and borrower differences
The study also points to sharper financial strain in certain markets and among specific groups of borrowers.
CMHC says borrowers in Toronto and Vancouver have experienced higher levels of stress compared with other regions, reflecting larger payment increases and higher debt loads. The research also identifies pandemic-era first-time homebuyers as facing greater challenges at renewal.
“We are also seeing elevated financial stress for mortgage holders in Toronto and Vancouver, as well as pandemic-era first-time homebuyers, who have all seen the highest increases in arrears and carry more risk going forward,” Bourassa-Ochoa said.
Focus on household finances
CMHC’s analysis examines how the mortgage renewal wave is affecting household balance sheets as higher interest rates reset borrowing costs for a large share of homeowners. The agency says the findings highlight how borrowers have adapted to higher rates, while also pointing to longer-term financial implications tied to extended amortizations.
The research forms part of CMHC’s ongoing work analyzing housing finance conditions and mortgage market trends as renewals continue through 2026.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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