In a recent survey by Royal LePage Real Estate Services, it has been revealed that Ontario homeowners are increasingly concerned about their upcoming mortgage renewals. The survey, conducted in 2023, highlights the impact of interest rate hikes by the Bank of Canada since March 2022 on mortgage holders in Ontario. Here’s why homeowners in Ontario should be paying attention to their mortgage renewals and considering their options.
A Growing Concern: 74% Worried About Renewal
A staggering 74% of Canadians with residential mortgages set to renew within the next 18 months have expressed concern about the renewal process. This heightened anxiety is a result of the series of interest rate hikes initiated by the Bank of Canada. The survey also indicates that 35% of Ontario homeowners will be renewing their lending agreements within the next year and a half, with 21% within 12 months and 15% in 12-18 months. That means a substantial number of Ontario homeowners, approximately 3.4 million, will have mortgages up for renewal by March 2025.
Exploring Renewal Options in Ontario
Facing impending mortgage renewals, many Ontario homeowners are considering changes to their mortgage terms to alleviate the financial strain, including:
- Extending Amortization Period
- Switching to a Different Lender
- Extending the Mortgage Term
- Downsizing
- Variable-Rate to Fixed-Rate Switch
Impact on Fixed-Rate Mortgage Holders in Ontario
Those with fixed-rate mortgages have been protected from the interest rate increases, at least for a short time. However, with expectations of the central bank’s key lending rate decreasing, fixed-rate mortgage holders in Ontario will soon face a new reality with higher monthly payments. As a result, many are exploring options to navigate the financial changes ahead.
Not All Concerned: 30% Unfazed in Ontario
Interestingly, 30% of Ontario mortgage holders are not concerned about their upcoming renewals. Among them, 55% are confident in their ability to absorb the higher interest rate due to their income, while 33% are close to paying off the remaining mortgage balance.
Conclusion: Ontario Homeowners and Mortgage Renewals
As Ontario homeowners navigate the challenges of upcoming mortgage renewals, seeking guidance is crucial. A knowledgeable mortgage agent can provide personalized insights and help make informed decisions. Click the link below to connect with a trusted mortgage professional and secure a smoother transition for your financial future.
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References:
- Royal LePage Real Estate Services – Press Release
Canada Housing Market 
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