Roughly 60 per cent of Canadian mortgage holders will face higher monthly payments when their loans come up for renewal in 2025 and 2026, according to a new Bank of Canada report.
In the latest staff analytical note, the bank says that although mortgage interest rates are expected to gradually decline, most borrowers will still see payment increases relative to their current contracts — many of which were signed during periods of lower interest rates.
The report estimates that in 2025, homeowners renewing their mortgages will see an average increase of 10 per cent in their monthly payments compared to December 2024 levels.
