TD Survey Reveals Mortgage Renewal Anxiety Among Homeowners
A recent survey conducted by Toronto-Dominion (TD) Bank has uncovered significant unease among Canadian homeowners as mortgage renewal periods approach. According to the findings, more than two-thirds of homeowners are feeling apprehensive about their upcoming renewals, prompting many to adopt financial caution.
Financial Strategies for Managing Higher Payments
Among homeowners anticipating increased mortgage payments, the survey indicates that 56% are reducing household spending to cope with the financial strain. Additionally, 39% plan to rely on savings or cut back on investments to manage the higher costs. Crystal Leigh, associate vice-president of real estate secured lending at TD, described the overall sentiment as one of prudence, noting that many customers are looking to tighten their belts during the renewal season.
Prospective Buyers See Opportunity in Market Conditions
Despite affordability challenges, the survey highlights encouraging indicators for prospective homebuyers. Approximately 30% of potential buyers intend to enter the housing market in 2026, with half attributing their decision to lower home prices and 35% citing stable interest rates as key factors. This suggests a pent-up demand among first-time buyers who have been waiting for favorable conditions.
Market Trends and Economic Context
The Canadian Real Estate Association reports that the Multiple Listing Service (MLS) home price index fell by 0.6% month-over-month and 4.8% year-over-year in February 2026, with the national average home price at $663,828. Shaun Cathcart, a senior economist at CREA, emphasized that 2026 is expected to be a year where first-time buyer demand finally sees an opportunity to emerge, though some may delay purchases in hopes of further price declines in markets like Ontario and British Columbia.
Survey Methodology and Economic Uncertainties
The TD survey, which involved 1,502 Canadians in February 2026, was conducted before geopolitical events led to fluctuations in bond yields and mortgage rates. While the Bank of Canada has maintained its key policy rate at 2.25%, analysts warn that potential rate hikes due to inflation concerns could impact variable rate mortgages. However, Leigh believes the broad themes from the survey will remain relevant, with customers having varying tolerances for interest rate changes.
Buyer Confidence and Financial Preparations
Interestingly, 68% of survey respondents expressed confidence in their ability to purchase a desired home in the coming years, and three-quarters are consistently saving money monthly for future home purchases. To support their buying goals, over half of prospective buyers are leveraging investment income, while nearly half are cutting non-essential spending. Additionally, about a quarter are open to alternative living arrangements, such as cohabiting with friends or family, to make homeownership feasible.
Regional Market Activity
Homebuying activity is already showing signs of revival in certain areas. For instance, Toronto experienced a 1.7% increase in home sales last month, marking the first uptick since the previous fall, according to the Toronto Regional Real Estate Board. This subtle shift indicates that some buyers are capitalizing on current market conditions to make their move.
