logo
60 per cent of Canadians could face higher mortgage payments by 2026: Bank of Canada

60 per cent of Canadians could face higher mortgage payments by 2026: Bank of Canada

CTV News17-07-2025
Houses are seen in a neighbourhood on Burnaby Mountain, in Burnaby, B.C., on Monday, June 10, 2024. (THE CANADIAN PRESS/Darryl Dyck)
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.
In 2026, the increase is expected to moderate to around six per cent.
The payment increases will vary depending on mortgage type. According to the bank, borrowers with fixed-rate mortgages, especially those with five-year terms, are likely to experience the steepest jumps in payments ranging between 15 and 20 per cent on average.
These borrowers make up 40 per cent of all mortgages in Canada and are driving the overall upward pressure on renewal payments.
While the majority of borrowers will see their payments rise, the bank's analysis shows that not all will be affected equally.
For homeowners with variable-rate mortgages that adjust monthly, payments are projected to decrease by five to seven per cent. Meanwhile, those with variable-rate mortgages with fixed payments may see mixed outcomes: around 10 per cent of these borrowers are expected to face increases of more than 40 per cent in 2026, while 25 per cent may see decreases of at least seven per cent.
Strain on households budgets
Borrowers facing payment increases at renewal are expected to see a sharper rise in their mortgage debt service (MDS) ratio — the share of income spent on mortgage payments — compared to those with payment decreases, the Bank of Canada says.
For those with rising payments, the median MDS ratio is projected to climb from 15.3 per cent in December 2024 to 18 per cent by the end of 2026. By contrast, borrowers with decreasing payments will see their median MDS ratio fall from 19.7 per cent to 18.6 per cent.
These projections assume no change in income though the bank notes many borrowers likely experienced income growth since their last mortgage term — helping them better manage higher payments.
Methodology
The bank based its analysis on the assumption that borrowers maintain the same type of mortgage and amortization period at renewal.
The amortization period is the process of gradually paying off a debt over a set period of time through regular payments.
The bank also used market-implied expectations for interest rates as of June 17 to model future payment scenarios.
Despite the anticipated financial pressure, the bank noted that some borrowers may not experience changes if they proactively renegotiate terms or adjust their amortization schedules.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

As Toronto aims to ban motorized craft at popular beach, some blame 'bad actors'
As Toronto aims to ban motorized craft at popular beach, some blame 'bad actors'

National Post

time17 minutes ago

  • National Post

As Toronto aims to ban motorized craft at popular beach, some blame 'bad actors'

Article content But some watercraft rental companies say despite following all the rules, they are being lumped in with a few 'bad actors' that are ruining operations for the rest through unsafe business practices. They are urging city council to reconsider the latest ban along Toronto's shores. Article content Raj Mehta, one of the founders of rental company Jetti, said that while he supports cracking down on unsafe and irresponsible operators, watercraft bans at city beaches also penalize businesses like his that operate safely. Article content 'We're at the ramp and on the water almost every day and we witness the safety issues the city is bringing up,' he said. 'There are some operators that should not be operating.' Article content Jetti sends its watercraft out of Humber Bay West, an area outside of PortsToronto's jurisdiction, he said. Article content Mehta said his company follows safety regulations by having insurance, GPS-based speed controls on Jet Skis to respect no wake zones, and issues proof of competency through rental boat safety checklists. Article content 'We use the public dock but we don't actually leave any watercraft in the water … when they come back, we pull them onto trailers and they're out of here,' he said, adding that manyother operators leave their watercraft along the shore. Article content 'Anyone can go buy a few Jet Skis and call themselves a rental company and start renting these out because there is no regulation,' he said. 'These are the guys causing the safety issues, these are the people that are not respecting public space.' Article content Mehta said he is willing to work with the city to figure out a solution that would focus on regulation, such as setting up designated launches for personal watercraft away from public beaches and boat launch areas, or leasing space from the city. Article content Despite reaching out to a local councillor and the mayor's office, Mehta said he has not received responses to his proposals and requests. Article content Companies looking to work with the city can reach out and make proposals but 'none of that's happened,' Bradford said, adding that an amendment to his motion to create a stakeholder advisory committee could include rental companies. Article content While Bradford recognizes the entire industry isn't breaking operational and safety rules, based on his observations at Woodbine Beach he believes rental companies aren't interested in working with the city. He said they could look into leasing boat slips across the waterfront if they want to continue their operations. Article content Mehta said his company has already explored renting space from marinas but there are a 'whole bunch of issues' with that option as marinas in the inner harbour fall under PortsToronto's jurisdiction, which requires boaters to have specific permits that would be difficult to obtain for short-term renters. Article content 'Jet Ski usage tends to negatively impact boaters and the boating experience in the harbour, so marinas are unlikely to want to cater to Jet Ski companies,' said Riehl from PortsToronto, adding that no marina in its jurisdiction rents space to such operators. Article content Mehta said he still hopes the city can figure out a solution that prioritizes safe and fair access to the waterfront and doesn't push away those who are trying to follow the rules.

Altasciences and VoxCell BioInnovation Announce Strategic Collaboration to Advance Preclinical Drug Development
Altasciences and VoxCell BioInnovation Announce Strategic Collaboration to Advance Preclinical Drug Development

National Post

time17 minutes ago

  • National Post

Altasciences and VoxCell BioInnovation Announce Strategic Collaboration to Advance Preclinical Drug Development

Article content LAVAL, Québec — Altasciences, a fully integrated drug development solution company, and VoxCell BioInnovation ('VoxCell'), a leader in 3D bioprinting and human-like tissue modeling, are pleased to announce a strategic collaboration aimed at enhancing preclinical research and accelerating the path from discovery to clinical trials. Article content This partnership combines Altasciences' comprehensive early-phase drug development capabilities with VoxCell's cutting-edge 3D tissue technology to offer a more predictive and human-relevant preclinical testing environment. By integrating VoxCell's high-resolution 3D bioprinted tissue platforms into Altasciences' discovery and preclinical services, both companies aim to reduce R&D timelines and increase the success rate of investigational therapies. Article content 'We're proud to partner with VoxCell BioInnovation to bring next-generation tissue modeling into the early stages of drug development,' Article content said Steve Mason, Co-Chief Operating Officer at Altasciences. Article content 'This collaboration aligns with our commitment to the 3Rs as well as to innovative, efficient solutions that improve data quality and accelerate decisions for our clients.' Article content VoxCell's proprietary bioprinted tissues are engineered to closely mimic the complexity of human tumors and other biological structures, offering drug developers an advanced platform for evaluating efficacy, safety, and toxicity—before moving into animal or human studies. Article content 'Our mission has always been to make drug screening more human-relevant and predictive,' Article content said Karolina Valente, CEO of VoxCell BioInnovation. Article content 'Altasciences shares this forward-thinking approach, and we're excited to work together to support pharmaceutical and biotech companies in making faster, more informed decisions.' Article content The collaboration will focus initially on drug screening for ocular indications, with plans to expand into additional therapeutic areas and applications. Article content This partnership represents a shared vision: to transform early-stage research through innovation, integration, and smarter science—delivering better outcomes for patients worldwide. Article content About Altasciences Article content Altasciences Article content preclinical Article content and Article content clinical pharmacology Article content studies, including Article content formulation, manufacturing, and analytical services Article content . For over 30 years, Altasciences has been partnering with sponsors to help support educated, faster, and more complete early drug development decisions. Altasciences' integrated, full-service solutions include Article content , Article content clinical pharmacology and proof of concept Article content , Article content bioanalysis Article content , program management, Article content research support Article content , medical writing, biostatistics, clinical monitoring, and data management, all customizable to specific sponsor requirements. Altasciences helps sponsors get better drugs to the people who need them, faster. To learn more about Altasciences, visit Article content . Article content About VoxCell BioInnovation Article content VoxCell BioInnovation Article content is a biotechnology startup founded in 2020 in Victoria, British Columbia, Canada. The company is dedicated to advancing the future of in vitro modeling by creating novel testing platforms for oncology research and drug development. Article content VoxCell develop 3D bioprinted vascularized human-like tissue models that closely replicate native biology, offering a powerful tool for predictive, physiologically relevant research. Using a proprietary high-resolution bioprinter, advanced vascularization software, and Universal Bioinks™, they produce complex tissue models that mirror patient biopsy samples in structure and function. Article content Article content Article content Article content Contacts Article content Article content

Here's a timeline of Trump's tariffs on Canada
Here's a timeline of Trump's tariffs on Canada

CBC

time18 minutes ago

  • CBC

Here's a timeline of Trump's tariffs on Canada

Social Sharing It's down to the wire on U.S. President Donald Trump's threat to raise his tariff on Canadian goods entering the United States to 35 per cent, up from the 25 per cent rate that he imposed soon after taking office. Trump set Aug. 1 as the deadline for Canada to reach a trade deal or face the tariff increase. Here's a brief timeline of the key tariffs on Canada. Feb. 1 Trump signs an executive order levying tariffs on Canadian exports to the U.S. at 25 per cent on all products, except energy, critical minerals and potash, which are hit with a rate of 10 per cent. The order justifies the tariffs as a way to "address the flow of illicit drugs across our northern border," citing fentanyl as a threat to national security. Trump later announces the tariffs will take effect March 4. WATCH | What a trade war with the U.S. would mean for Canada: March 6 Just two days after Trump's tariffs on Canada come into force, Trump amends his executive order, giving an exemption for products that comply with the terms of the Canada-U.S.-Mexico Agreement (CUSMA). The exemption covers nearly 90 per cent of Canadian exports to the U.S., which means the vast bulk of products can cross the border tariff-free. Trump's tariff war on Canada has finally begun | About That 5 months ago April 29 After threatening to impose a 25 per cent tariff on automobiles and auto parts from outside the U.S., Trump waters down the levy, so it only applies to parts that aren't CUSMA-compliant and the non-U.S. portion of assembled vehicles. Still, the tariffs have an impact on Canada's auto sector and bite into the profits of North American automakers. WATCH | Here's where things stand with Trump's auto tariffs: U.S. tariffs on auto parts take effect, CUSMA-compliant parts exempt 3 months ago May 6 Prime Minister Mark Carney, just days after leading his Liberal Party to a minority election win, meets Trump at the White House. Carney presses Canada's case for the removal of tariffs, and while Trump speaks highly of his guest, the president gives no sign he's changing his mind on the issue. Carney mouths 'never' several times responding to Trump's 51st state idea 3 months ago Prime Minister Mark Carney silently mouthed the word 'never' five times and smiled after U.S. President Donald Trump said 'never say never' to the idea of Canada becoming the 51st state during the leaders' Oval Office sit-down. June 3 Separately from the tariffs on Canadian goods, Trump doubles his tariff on steel and aluminum imports from all countries, to 50 per cent. Canada is the top supplier of both products to the U.S. WATCH | How Canada's steel producers are reacting to Trump's latest tariff threat: Trump's new tariff threat 'punch in the gut' to Canada's steel industry: CSPA 2 months ago Catherine Cobden, head of the Canadian Steel Producers Association, says U.S. President Donald Trump's new threat, to double tariffs steel and aluminum tariffs to 50 per cent, 'completely unjustified' and Ottawa should quickly impose retaliatory tariffs. Read more: July 10 Trump threatens in a letter posted on his Truth Social platform to boost the tariff on Canadian goods to 35 per cent, effective Aug. 1. "If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter," Trump writes. Trump's tariff deadline: What a deal could cost Canada 15 days ago July 11 Goods that comply with CUSMA will continue to be exempt from the tariff even if the rate rises on Aug. 1, according to a White House official. WATCH | Why most Canadian exports still get into the U.S. tariff-free: CUSMA-compliant Canadian exports exempt from Trump's latest tariffs 1 hour ago July 25 One day after Canada's top negotiators downplay the prospects of getting a deal by Trump's deadline, the U.S. president also throws cold water on Canada's chances. "We haven't really had a lot of luck with Canada," he tells reporters at the White House. "I think Canada could be one [country] where there's just a tariff, not really a negotiation." U.S. and Canada might not reach trade deal, Trump says WATCH | 'We haven't really had a lot of luck with Canada,' Trump says: Trump on trade: 'I think Canada could be one where they'll just pay tariffs' 6 days ago President Donald Trump said Friday that the U.S. is working 'very diligently' with the EU on tariff talks, and has 'the confines of a deal with China — though he didn't offer details. Trump added there's no deal with Canada, saying 'we haven't been focused on it.' July 30 Prime Minister Mark Carney says Canada's negotiating team is back in Washington for trade talks but gives his clearest indication yet that Canada might not land a deal by Trump's Aug. 1 deadline. Then shortly after midnight, Trump posted on his Truth Social platform, "Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them." WATCH | As Trump's deadline nears, Carney says deal may not happen in time: Carney says 'we'll see' about a U.S. trade deal by deadline 18 hours ago Prime Minister Mark Carney says Canada's delegation negotiating with the U.S. on a trade deal is back in Washington ahead of the Aug. 1 deadline imposed by U.S. President Donald Trump, but gave his clearest indication yet that Canada might not land a deal in time.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store