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TL;DR
56% of surveyed foreign-born homeowners whose renewal rates changed now spend 50 to 70 percent of their monthly budgets on mortgage payments.
82% of all surveyed borrowers with changed renewal rates said their borrowing costs went up.
The Bank of Canada expects average payments to rise by about 20% for five-year fixed mortgage holders renewing in 2026.
Borrowers can compare different lenders before renewing, but switching or extending the amortization period might come with extra costs.
Foreign-born homeowners say they feel more financial pressure after renewing their mortgages. 56% report that payments now take up 50 to 70 percent of their monthly household spending.
The comparable figure was 35% among Canadian-born borrowers, according to a Rates.ca survey conducted by Leger. The survey covered homeowners who renewed at a changed rate since January 2025.
Among all respondents with changed mortgage rates, 82% faced higher borrowing costs. This rose to 85% for foreign-born homeowners and 90% for those aged 18 to 34.
Leger surveyed 1,516 Canadian adults online from July 24 to 26, 2026. The results are self-reported, and the survey does not explain why foreign-born borrowers have a larger housing cost burden.
Canada’s mortgage renewal wave continues
Higher payments are a result of the shift from low pandemic-era mortgage rates. The Bank of Canada estimates that about 60% of mortgages will renew in 2025 or 2026.
According to the Bank’s modelling, five-year fixed-rate borrowers renewing in 2026 could see their payments go up by about 20% on average. Rates.ca gave an example: a $500,000 mortgage originally at 1.99%. If renewed at 4.29%, the monthly payment would rise by about $479.
The central bank does not expect the renewal cycle to cause major financial stress across the system if employment stays steady. Still, Rates.ca reported that 14,061 bank mortgages were at least 90 days overdue in May 2026, the highest in over a decade. The national arrears rate stayed below 0.3%.
Foreign-born home buyers have more debt
A Statistics Canada study found that recent immigrant buyers, even with lower incomes, bought more expensive homes than Canadian-born buyers. The agency said this could be linked to higher mortgage debt and less retirement savings.
The study used data up to 2021 and looked at recent immigrants, while the Rates.ca survey focused on foreign-born homeowners. So, the findings offer context but do not compare the same group.
Edmonton homeowners have more refinancing room
Edmonton homeowners are also seeing higher renewal rates. However, rising property values mean borrowers there may have more equity than those in cities where prices have dropped. According to the Edmonton Journal, the city’s benchmark detached-home price was about $510,000 in July, up from around $424,000 in 2021.
Refinancing can help lower monthly payments by extending the amortization period or combining higher-interest debt. However, it requires approval and could increase your total interest costs.
What this means for you
If your mortgage term ends in the next four months, compare your lender’s offer with rates from other banks or a mortgage broker. The Financial Consumer Agency of Canada says federally regulated lenders must give you a renewal statement at least 21 days before your term ends.
Don’t assume that automatic renewal gives you the best deal. Ask about the rate, payment amount, fees, and total borrowing cost. Extending your amortization can lower your monthly payment, but it means you’ll pay your mortgage for longer and could pay thousands more in interest. Switching lenders might also mean a new application, appraisal, or mortgage insurance premium.
Before you go…
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Dozie Anyaegbunam | Managing Editor