How are Canadian homeowners navigating budget challenges?
It can be difficult enough managing a mortgage without the daily economic uncertainty that 2025 has wrought so far. Six in 10 homeowners renewing their mortgage in the next two years anticipate higher interest rates, with the average expected increase between 1% and 2%. Amidst this backdrop, mortgage holders have a number of key concerns:
- inflation and living costs (94%)
- broader economic conditions (89%)
- interest rates (85%)
- potential US tariffs (80%)
Concerns about election outcomes in Canada are not far behind at 70%.
Determined to make budgets work, over half of renewers expecting a higher rate are tightening their belts by opting for more affordable shopping options and cutting back on discretionary spending such as travel and entertainment.
Many are also shopping for better mortgage rates (42%), seeking additional income sources (24%) and making lump sum payments towards their mortgages (19%).
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Given that uncertainty, it seems most homeowners are opting for the more concrete option when it comes to their mortgage. Nearly two-thirds (64%) of those renewing their mortgages in the next two years plan to secure fixed-rate mortgages, with 17% leaning towards variable rates and 19% remain undecided.
Amidst fluctuating interest rates, nearly two-thirds (64%) of Canadians with variable rate mortgages report little to no impact on their standard of living, while the remaining one-third experience moderate to severe financial strain.
Despite the housing crisis and current economic woes, 55% of Canadians are homeowners. Additionally, homeownership still remains a highly valued milestone, with 90% of homeowners expressing pride in their achievement.
Survey methodology
The findings come from an Ipsos poll of 1,500 Canadians aged 18 and above conducted online between Jan. 20 and 28, on behalf of CIBC.
Sources
1. Cision: Amid economic uncertainty majority of Canadian homeowners express confidence in managing mortgage payments and budgets (March 24, 2025)
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