One-third of Canadian mortgage-holders are set to see their mortgages increase by the end of 2026, but a new Bank of Canada report suggests the vast majority have already built up a buffer against the rising costs.
Previous Bank of Canada data suggest that 60 per cent of all mortgages in Canada are up for renewal in 2025 and 2026. One-third of all mortgage holders will see an increase in their monthly payments during this period.
But Canadians are saving more, a new report released Friday shows.
The report looks at liquid assets — money held in chequing accounts, savings accounts, guaranteed investment certificates (GICs), exchange-traded funds (ETFs), stocks, bonds and mutual funds —accumulated by both homeowners and renters.
Between 2019 and 2024, Canadians with mortgages saw their liquid assets go up from 4.7 months of income to 4.8 months. Meanwhile, renters saw their liquid assets rise from 1.7 months to two months.
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After interest rates rose in 2022, mortgagors and renters both experienced reduced savings, while mortgage-free homeowners maintained their liquid financial wealth.
Total financial assets includes both liquid assets — money you can easily withdraw — and assets held in inaccessible accounts or accounts with complex, heavy withdrawal penalties.
While some homeowners would struggle to cover their higher mortgages with their savings, most would be able to dip into them.
“Overall, we find that most households have the capacity, if necessary, to meet the increase in their mortgage payments using their financial assets,” the report said.
Among the households renewing their mortgages this year and next year, 94 per cent could cover the increase for at least 12 months with their financial assets, the report said.
The report added that 83 per cent can cover their increased mortgage by dipping into only their liquid assets.
“That said, we also find that about 1 in 10 households have a buffer of liquid assets that would only last one month or less — an important signal of the pressure some mortgagors may face after renewal,” the report added.
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