85% Of Mortgages Up For Renewal In 2025 Face Higher Interest Rates

With interest rates remaining high, CMHC also reports that, in 2024, mortgage delinquencies continued to increase from "historic low levels" of 0.14% in 2022.

"Renewal risk remains" as the majority of the 1.2 million mortgages up for renewal in 2025 will face higher interest rates than when their term began, finds the Canadian Mortgage and Housing Corporation (CMHC) in their Fall 2024 Residential Mortgage Industry Report.

According to CMHC, 85% of those 1.2 million mortgages were contracted when the Bank of Canada (BoC) rate was at or below 1%.

Currently, the rate sits at 3.75, though experts are predicting another 50 basis point cut on December 11. Still, the interest rate isn't expected to hit 2% until July 2025, at the earliest, and will likely not be hitting 1% anytime soon.

Thus, a certain percentage of those with mortgages up for renewal in 2025 could experience interest rates anywhere from 1% to 2.25% higher than when they entered into their term.

With interest rates remaining high, CMHC also reports that, in 2024, mortgage delinquencies continued to increase from "historic low levels" of 0.14% in 2022.

In the second quarter, the mortgage delinquency rate hit 0.19% — a rate below pre-pandemic levels (0.28% in 2019) and well below averages since 1990, but one expected to increase through 2025, as suggested by delinquency rates on other credit products and allowances for expected credit losses.