Many Canadian homeowners who secured exceptionally low mortgage rates during the pandemic are approaching renewal. Although borrowing costs have fallen from their recent peaks, renewing borrowers may still face higher monthly payments.

According to the Royal LePage 2026 Mortgage Renewal Survey, 38% of Canadian mortgage holders expect their monthly payment to increase when they renew. Another 31% anticipate little or no change, while 17% expect their payment to decrease.

Vancouver homeowners are feeling greater anxiety

Nationally, 35% of respondents said they feel more anxious about their upcoming renewal than they did about their previous one. In Vancouver, that figure rises to 45%.

This is understandable. Mortgage balances in Greater Vancouver are often considerably larger than in other Canadian markets. Even a relatively modest change in interest rates can translate into a meaningful increase in monthly housing costs.

The greatest concern is among homeowners who purchased, refinanced or last renewed in 2021 or 2022, when interest rates were near historic lows. Although most borrowers understood those rates would not last indefinitely, the actual increase can still be difficult to absorb alongside higher costs for groceries, insurance, utilities and other household expenses.

Higher payments will put pressure on household budgets

Among respondents expecting their mortgage payment to increase, 76% said the change would place pressure on their household finances.

That does not necessarily mean these homeowners will be unable to afford their properties. Most borrowers were required to pass the federal mortgage stress test, demonstrating that they could manage payments at a higher interest rate than the rate they initially received.

Instead, many households will likely adjust other areas of their budgets. This could include reducing discretionary spending, postponing renovations, travelling less or redirecting money previously allocated to savings.

Homeowners approaching renewal should begin reviewing their options well before their current term expires. Speaking with a mortgage professional early provides time to compare lenders, evaluate different mortgage terms and understand exactly how a new payment will affect the household budget.

Most homeowners are not planning to sell

Despite the financial pressure, the survey does not point to a widespread wave of forced sales.

Seventy-one per cent of respondents said they are not considering changing their living arrangements to reduce their housing costs. Among the 22% contemplating a change, 7% are considering moving to a more affordable region, 5% may rent out part of their home and another 5% are thinking about downsizing.

This suggests most Canadians continue to place a high priority on remaining in their homes. Rather than selling, they plan to adjust their spending and manage the higher payment.

For the Greater Vancouver real estate market, this may also limit the number of new listings generated by mortgage renewals. If most owners stay where they are, higher payments alone are unlikely to produce the significant increase in housing inventory some buyers have been anticipating.

When selling or downsizing may be worth considering

While most homeowners intend to remain in place, renewal is still a sensible time to review whether a property continues to suit their needs and financial goals.

For some owners, downsizing could reduce both mortgage payments and ongoing maintenance expenses. Others may consider relocating to a more affordable community or creating a rental suite to help offset housing costs.

These decisions should be based on more than the new mortgage payment alone. Selling costs, available equity, replacement housing prices and the cost of financing the next property all need to be considered.

Before making a major change, homeowners should understand what their current property is worth, what realistic alternatives are available and whether moving would produce a meaningful financial benefit.

Preparation can reduce renewal stress

The approaching renewal wave will create challenges for some households, particularly in higher-priced markets such as Vancouver and Coquitlam. However, the survey indicates that most Canadian homeowners believe they can manage the transition.

The best first step is to prepare early. Review your mortgage, household budget and available options before receiving a renewal offer. If selling, downsizing or relocating is one of the possibilities you are considering, an updated market analysis can help you make the decision using current numbers rather than assumptions.

David Reimers is an experienced Coquitlam REALTOR® and Coquitlam real estate agent serving clients throughout Greater Vancouver. If you would like to understand your home’s current market value or discuss whether a move makes financial sense, please get in touch.

Survey methodology: Burson used the Leger Opinion online panel to survey 1,127 Canadian mortgage holders aged 18 and older who are approaching renewal. The survey was conducted between July 20 and August 6, 2026.