A significant number of GTA homeowners who secured mortgages during the pandemic’s low-interest rate environment may face a considerable increase in their monthly payments upon renewal in 2026. According to a recent report, some could see their mortgage payments jump by as much as 20%. For an average mortgage of $550,000, this translates to an extra $550 per month, or approximately $6,600 annually.
While this increase will undoubtedly strain household budgets, experts believe that the original stress tests applied during mortgage approvals should prevent a wave of forced sales. Instead, homeowners may need to adjust their spending habits and potentially cut back on savings to manage the higher costs. Some may also consider extending their mortgage terms, but this could lead to significantly higher interest payments over the long run.
For a more detailed analysis of this developing situation, read the full article on ctvnews.ca.
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