More than half of homeowners bracing for higher payments are reducing spending, while nearly one third of prospective buyers plan to enter the market soon.
TORONTO, April 8, 2026 /CNW/ - As Canada's housing market shifts, a new TD survey highlights how Canadians are being pulled in two directions: homeowners approaching mortgage renewal are cutting budgets to manage higher payments, while prospective buyers are saving up and quietly preparing to make a move this year.
Mortgage renewals in Canada: homeowners tighten belts and search for certainty
For many Canadians, mortgage renewal marks a need for a financial checkup. Among homeowners anticipating higher payments, more than half (56%) say they'll reduce their household spending and nearly four in 10 (39%) expect to rely on savings or invest less.
Stress runs high, too: more than two-thirds (67%) of homeowners polled are feeling uneasy about their mortgage renewal.
Key renewal trends include:
- Most homeowners are choosing stability, with 64% planning to renew at a fixed rate.
- Five-year and three-year fixed rate terms lead the way as the most popular term choices (30% and 17% respectively).
- Despite feeling stressed, only 9% of homeowners say they'll start renewal conversations earlier with their lender or mortgage broker.
- Two in five homeowners (40%) will shop around for a new lender at renewal.
"Mortgage renewal can feel overwhelming and Canadians appear to be feeling that pressure," said Patrick Smith, Vice President, Real Estate Secured Lending at TD. "In an evolving rate environment, understanding your options and planning ahead through earlier renewal conversations can help Canadians feel more confident, make clearer choices and stay in control of what comes next."
Prospective homebuyers in Canada: cautious optimism amid affordability challenges
While existing homeowners focus on renewal decisions, prospective buyers appear to be ready to emerge from the sidelines. Three in 10 prospective buyers (30%) surveyed are now more likely to enter the housing market before the end of the year, with lower home prices (50%) and stable interest rates (35%) driving buying decisions.
Still, affordability remains the biggest hurdle. Half of potential buyers are leaning on their investment income (52%) and trimming non-essential spending (48%) to support their home purchase.
Among prospective buyers:
- Three-quarters (75%) are setting aside money each month toward a future home purchase, and nearly half (48%) expect to make a down payment of less than 20%, which means they may need a high-ratio mortgage requiring default insurance.
- One-quarter (24%) are considering alternative living arrangements to make homeownership work.
- More than half (58%) admit they're not familiar with home equity lines of credit (HELOCs).
"Buying a home is about more than the purchase price. It's about positioning yourself for the years ahead. Buyers have options and should explore how down payment amounts, rate structures or different home lending products can impact monthly costs," said Smith. "Working with a mortgage professional early can help buyers understand how these decisions affect their everyday finances and long‑term goals."
5 Top Tips: Navigating Homeownership and Mortgage Decisions
How can I prepare for my mortgage renewal?
The earlier you renew within the renewal time period, the better. Renewing at TD as soon as 120 days before your mortgage loan matures means less worrying about future interest rate fluctuations and possibly earlier interest savings if the new rate is lower than your existing rate. And there will be no prepayment charges.
Fixed vs. variable interest rates: which option is right for me?
A fixed rate mortgage means your interest rate will not change over the term of your mortgage loan and neither will the amount of your principal and interest payments. People might opt for a fixed rate mortgage, so they know what their mortgage balance will be at the end of their mortgage term. Under a variable rate mortgage at TD, your payment amount stays the same over the course of your term, but you can experience the fluctuations of any change in the TD Mortgage Prime Rate. When rates fall, a higher proportion of your payment will go towards the principal amount on your mortgage. On the other hand, when rates go up, a higher proportion of your payment will instead go towards interest.
The right option depends on your comfort with risk, income stability, and how much payment certainty you want. Understanding how each option works can help you choose what best fits your situation.
How can I prepare for higher mortgage payments at renewal?
If higher payments are a possibility, planning ahead can help reduce stress. Reviewing your budget, paying down other debts or setting aside extra savings can make payment changes easier to manage. Even small adjustments ahead of time can provide added flexibility.
What's the difference between a mortgage and a HELOC?
While both are secured by your home, they work quite differently. A mortgage loan is a one-time loan, typically for purchasing property, paid off over time with regular scheduled payments. A home equity line of credit (HELOC) at TD can combine the flexibility of a line of credit with the stability of a mortgage loan, letting you use your home equity to use credit whenever you need it, within the terms of the agreement, for things like home improvements, education costs or other goals.
According to our survey, nearly half of Canadians polled (47%) aren't familiar with HELOCs and their benefits. Understanding how each option works can help homeowners decide what best meets their needs.
How can I save for a down payment on a home in Canada?
Saving for a down payment starts with setting a clear goal and building a plan. Many buyers save regularly, adjust discretionary spending or save for their purchase through use of a registered savings plan like the First Home Savings Account (FHSA). The TD Mortgage Affordability Calculator can help you understand how you can work towards affording your home.
When is it a good time to buy a home in Canada?
There's no one‑size‑fits‑all answer. The right time to buy is different for everyone—it's when your savings, budget and long‑term plans align with the responsibilities of homeownership. Personal readiness matters just as much as market conditions.
About the TD survey
This TD survey, conducted using the Leger Opinion panel, ran throughout February 2026, with a nationally representative sample of 1,502 Canadian adults. The results were weighted by age, gender and region to match the population, according to census data. For comparison purposes, a probability sample of 1,500 has an estimated margin of error of plus or minus 2.5 per cent, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on January 31, 2026. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.
SOURCE TD Bank Group
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