What mortgage brokers are seeing with renewals amid rate hikes

Canadian mortgage owners are feeling the squeeze of increased borrowing costs, but despite challenges, few are looking to sell, according to several mortgage brokers.

The Bank of Canada hiked interest rates for a sixth consecutive time at its October meeting, increasing its key benchmark rate by 50 basis points to 4.25 per cent.

Faced with heightened borrowing costs, some mortgage owners are apprehensive about their looming renewal. A survey, conducted by RATESDOTCA and BNN Bloomberg, found that 53 per cent of mortgage owners are concerned that their payments will rise during renewal. 

Due to the higher costs, 38 per cent of respondents said they would cut back on spending and nine per cent said they would rely on their savings. Only two per cent of individuals said they plan to sell their home.