Amid economic uncertainty majority of Canadian homeowners express confidence in managing mortgage payments and budgets
TORONTO, March 24, 2025 /CNW/ - A new CIBC poll finds that amidst the volatility in inflation and higher costs of living, mortgage holders are taking proactive measures to mitigate financial strain, with the majority feeling confident in their ability to handle their mortgage payments and make their budgets work.
In fact, 64% of variable rate mortgage holders remain unaffected, reporting little to no impact on their standard of living, as do 59% of those expecting higher renewal rates.
"As mortgage rates are declining, it's encouraging to see that despite continued financial pressures, the majority of homeowners remain confident in their ability to manage their living expenses," said Daniel Rethazy, Senior Vice-President, Personal Lending, CIBC.
Homeowners determined to navigate budget challenges amidst fluctuating economic conditions
Six in 10 homeowners renewing their mortgage in the next two years anticipate higher interest rates, with the average expected increase between 1% and 2%. Amidst this backdrop, mortgage holders have a number of key concerns including inflation and living costs (94%), broader economic conditions (89%), interest rates (85%) and potential US tariffs (80%), with concerns about election outcomes in Canada not far behind at 70%.
Determined to make budgets work, over half of renewers expecting a higher rate are tightening their belts by opting for more affordable shopping options and cutting back on discretionary spending such as travel and entertainment (57%). Many are also shopping for better mortgage rates (42%), seeking additional income sources (24%), and making lump sum payments towards their mortgages (19%).
"At CIBC, we understand that navigating the current economic uncertainty and rising cost of living can create stress for Canadians as they manage their mortgage commitments and household budgets," said Daniel Rethazy, Senior Vice-President, Personal Lending, CIBC. "We are committed to providing Canadian homeowners with personalized solutions and advice, to help them manage their mortgage payments with confidence and to support their overall financial well-being."
Other Key Findings:
- Nearly two-thirds (64%) of those renewing their mortgages in the next two years plan to secure fixed-rate mortgages, while 17% lean towards variable rates, and 19% remain undecided.
- Amidst fluctuating mortgage interest rates, nearly two-thirds (64%) of Canadian variable rate mortgage holders report little to no impact on their standard of living. However, the remaining one-third experience moderate to severe financial strain.
- 55% of Canadians are homeowners. Despite economic uncertainties, homeownership remains a highly valued milestone, with nine in ten homeowners expressing pride in their achievement.
Disclaimer
The findings are from an Ipsos poll conducted between January 20 and 28, 2025, on behalf of CIBC. For this survey, a sample of 1,500 Canadians aged 18+ were interviewed online. Sample was sourced from the Ipsos panel. Weighting was employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.1 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population.
About CIBC
CIBC is a leading North American financial institution with 14 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre
SOURCE CIBC
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