Katherine Meana

A new survey found >2-thirds of homeowners felt uneasy about upcoming mortgage renewals, showing broad caution as households prepared for possible payment pressure.
Among owners expecting higher payments, 56% cut household spending, while 39% planned to use savings or reduce investments to manage renewal costs.
Despite affordability worries, 30% of prospective buyers said they planned to enter the market in 2026, encouraged by lower prices and stable interest rates.
Half of those buyers pointed to lower home prices, while 35% cited stable rates as motivation to purchase in 2026.
Canada’s MLS price index in Mid-Q1 ↓0.6% MoM and ↓4.8% yearly. The national avg. home price was $663.8K, non-seasonally adjusted.
Buyer confidence remained notable: 68% believed they could buy their desired home within the next few years, and 75% saved monthly toward that goal.
Prospective buyers also leaned on investment income, cut non-essential spending, and sometimes considered living with friends or 

Mortgage Renewals Push Spending Cutbacks

In Canada, no single multigenerational mortgage existed. Families typically used joint mortgages or segmented equity plans to pool income, title and borrowing capacity.
Purpose-built options differed from standard co-signed loans by assessing household income together, counting projected suite rent, and sometimes supporting construction draws for builds or renovations.
CMHC-backed insurance applied to owner-occupied properties with 1-4 units. Buyers living in one unit could qualify below $1.5M and count up to 50% projected rent.
Construction mortgages worked differently and cost more, with rates starting near 6%-7%, staged draws, inspections, and potentially six-figure interest costs over an 18-mo build.
For adding a secondary suite, the federal tax credit covered 14.5% of eligible renovation costs, up to $7,250, for qualifying seniors or disabled adults.