2023 Mortgage Renewal Survey by Royal LePage Canada

 In Real Estate Market News

Renewal jitters: Canadians concerned about upcoming mortgage renewals consider extending their amortization periods, switching lenders.

74% of mortgagees with lending agreements set to renew within the next 18 months report feeling concerned about higher interest rates:


  • 16% of current mortgagees will be renewing their lending agreements within the next 12 months, while another 15% will be renewing in 12 to 18 months
  • Almost three-quarters (74%) of Canadian mortgage holders currently have a fixed-rate mortgage; 20% have a variable-rate mortgage
  • 40% of variable-rate or hybrid mortgage holders concerned about their upcoming renewal say they plan to switch to a fixed rate
  • 64% of variable-rate or hybrid mortgage holders say that higher interest rates have caused their mortgage payment to hit its trigger rate and thus increased their monthly cost
  • 76% of variable-rate or hybrid mortgage holders say that higher interest rates have caused financial strain on their household, causing them to reduce spending and dip into savings

When asked about their impending mortgage renewals, many Canadians say they are considering changing the type of mortgage product they sign or increasing the amortization period, along with an array of cost-cutting measures. Twenty-four per cent of residential mortgage holders who are concerned about their renewal say they have considered extending their mortgage’s amortization period, while 23 per cent have contemplated switching to another lender in order to secure a better rate. If switching lenders, however, applicants with uninsured mortgages must qualify for the stress test, which is the higher of 5.25 per cent or the lending rate plus two per cent. This additional challenge may cause some borrowers to renew with their current lender at a higher rate in order to avoid the stress test.

Eighteen per cent of mortgage holders have thought about extending their next mortgage term, and 17 per cent have considered selling their home and buying a smaller property in order to reduce the size of their mortgage. Respondents were able to select more than one answer. Among those who currently hold a variable-rate or hybrid mortgage and reported feeling concerned, 40 per cent say they plan to switch to a fixed-rate mortgage upon renewal.


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