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Final Wave of Pandemic-Era Mortgages Nears Renewal as Canadian Borrowers Face Higher Payments: Royal LePage

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The final wave of pandemic-era mortgages is nearing renewal, with many Canadian borrowers facing higher monthly payments, according to a Royal LePage Survey published on Wednesday.

Over the next year, mortgages equivalent to around 12% of outstanding balances will come up for renewal, with many borrowers still facing higher rates than those secured during the record-low-rate period, said Royal LePage.

"The pandemic-triggered era of ultra-low rates came to an abrupt halt in early 2022, having lasted less than two years," said Phil Soper, president and CEO, Royal LePage in the survey. "While many Canadians who secured record-low mortgages during this period have already navigated their renewals, the final major group of rock-bottom rate holders are up for renewal, and understandably, they are concerned."

A recent Royal LePage survey found that 38% of mortgage holders expect their monthly payments to rise at renewal, including 12% anticipating a significant increase. Nearly 35% are more anxious about their upcoming renewal than the previous one.

Despite higher borrowing costs, Canada has so far avoided a widespread mortgage default crisis, added Royal LePage. The national delinquency rate rose to 0.24% in the last quarter of 2025 from 0.21% a year earlier, but remains well below pre-pandemic levels.

Many borrowers are cutting spending, delaying renovations or extending amortizations rather than selling, it added.

Stress-testing has provided some cushion, with 2021 borrowers generally qualifying at rates of at least 5.25%, above many rates today, said Royal LePage. Still, pressure is greater in expensive markets such as Vancouver and Toronto, where larger mortgages mean higher payment burdens.

Most borrowers are managing higher costs, though elevated debt and affordability pressures will continue to test some households, according to the company.

"Most homeowners facing renewal are deciding how to fit a higher payment into their budget, not whether they can afford to keep their home," said Royal LePage's President and CEO Phil Soper.

The Royal LePage survey took place between July 20 and Aug. 6, with 1,127 Canadian adults taking part.

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