Affordability in Canada: What the Numbers Are Telling Us
Mortgage Affordability in Canada: What Homeowners and Buyers Need to Know
Mortgage Professionals Canada recently released new data that puts numbers to what many Canadians are already feeling: affordability is tight, renewals are stressful, and the path to homeownership now requires more planning than it used to.
Whether you are a homeowner preparing for renewal, a buyer watching from the sidelines, or a newcomer trying to understand your options, the picture is complex. But it is not hopeless.
Here is what the data tells us, and what it may mean for you.
The Renewal Reality
Nearly one in three mortgage holders will be renewing their mortgage in the next 12 months. For many, that comes with understandable concern. According to the data, 67% of borrowers say they are worried about facing higher rates at renewal.
That is a big number, but the most important question is not whether renewal feels stressful. It is whether you have a plan.
Rates, terms, lender options, and your personal financial picture may all look different than they did when you first signed your mortgage. Waiting for your lender’s renewal offer may feel easy, but it does not always lead to the best outcome.
If your mortgage is coming up for renewal in the next year, it is worth starting the conversation early. More time means more options, and more options usually means a stronger position.
Ownership Now Requires More Creativity
One of the most telling shifts in the data is that 36% of homeowners now need to rent a portion of their home to afford ownership. In 2021, that number was 25%. Among newcomers to Canada, it rises to 53%.
That is no longer a fringe strategy. For many Canadians, rental income has become part of how homeownership works.
This matters because rental income can affect mortgage qualification, tax planning, cash flow, and long-term affordability. It also reflects a broader truth: the path to ownership has changed. It often requires more creativity, more preparation, and a clearer understanding of what is actually possible.
There are still reasons for confidence. The share of non-owners who say they will never own a home has dropped from 51% in 2023 to 32% today. Another 22% expect to buy within the next two years. And 76% of Canadians still believe real estate is a good long-term investment.
The desire to own has not disappeared. The strategy just matters more than ever.
Payment Pressure Is Still Real
The most sobering part of the data is how little room many homeowners have for higher payments.
Six percent of mortgage holders are already struggling with their current payments. Another 22% would struggle if their payments increased by less than 10%. Nearly half would only begin to experience difficulty if payments rose by 15% or more.
That means a meaningful number of households are vulnerable to even modest changes. A rate adjustment, job change, unexpected expense, or health event can quickly put pressure on the budget.
But pressure does not automatically mean there are no options.
Depending on the situation, there may be ways to improve cash flow, restructure debt, revisit amortization, explore rental income, consolidate obligations, or plan for a more manageable renewal. The key is to look at the full picture before things become urgent.
The Bottom Line
The affordability challenge in Canada is real. So is the pressure many homeowners and buyers are feeling.
But the data also shows something important: people still want to own, still believe in real estate as a long-term investment, and still have options when they plan ahead.
At Cultivate + Evolve Financial, our role is to help you understand those options clearly. Whether you are preparing for renewal, hoping to buy, or trying to ease pressure on your household, you do not have to figure it out alone.
If you would like to talk through your situation, we are always happy to help.
Catherine Melville is a mortgage broker and the founder of Cultivate + Evolve Financial Inc.
Data source: Mortgage Professionals Canada, 2025 Annual State of the Residential Mortgage Market in Canada.
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Affordability is still one of the biggest challenges facing Canadian homeowners and buyers. New data shows growing pressure around renewals, payments, and qualification, but also highlights why planning ahead can make a meaningful difference.