Canadians cut expenses and tap savings while eyeing opportunities in housing market
Canadian households are tightening their finances as a wave of mortgage renewals approaches, even as a growing share of prospective buyers signal plans to enter the housing market, according to a new survey from TD.
The findings point to a divided environment: current homeowners are preparing for higher borrowing costs, while potential buyers are cautiously getting ready to make a move before the end of the year.
More than half (56%) of homeowners expecting higher payments say they will curb spending, while 39% anticipate drawing on savings or reducing investments to manage rising costs.
Financial stress remains widespread, with 67% of respondents indicating concern related to upcoming mortgage renewals.
“Mortgage renewal can feel overwhelming and Canadians appear to be feeling that pressure,” said Patrick Smith, vice president, real estate secured lending at TD. “In an evolving rate environment, understanding your options and planning ahead through earlier renewal conversations can help Canadians feel more confident, make clearer choices and stay in control of what comes next.”
Even with uncertainty around rates, stability is a priority for many borrowers. Nearly two-thirds (64%) say they plan to renew into fixed-rate mortgages, with three- and five-year terms the most popular choices.
However, early engagement remains limited. Only 9% of homeowners expect to start renewal discussions ahead of schedule, though 40% say they intend to explore switching lenders.
On the demand side, signs of renewed interest are emerging.
Roughly 30% of prospective buyers say they are more likely to purchase a home before the end of 2026. Expectations of softer home prices (50%) and more stable interest rates (35%) are key drivers behind that shift.
Affordability challenges persist, however. Many aspiring buyers are relying on investment gains (52%) and reducing discretionary spending (48%) to build their down payments.
Three-quarters (75%) report saving monthly toward a home purchase, but nearly half expect to put down less than 20%, which could require mortgage insurance.
The survey also highlights a knowledge gap, with 58% of respondents unfamiliar with home equity lines of credit.
“Buying a home is about more than the purchase price. It's about positioning yourself for the years ahead. Buyers have options and should explore how down payment amounts, rate structures or different home lending products can impact monthly costs,” Smith said.
“Working with a mortgage professional early can help buyers understand how these decisions affect their everyday finances and long-term goals.”
The research, conducted in February among more than 1,500 Canadians, underscores the balancing act facing borrowers as they navigate rising costs while positioning for future opportunities in the housing market.
