Blog > 28% of residential mortgage holders in Quebec will be renewing next 18 months
28% of residential mortgage holders in Quebec will be renewing next 18 months
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More than 3 million Canadians have a mortgage renewal in the next 18 months, and most of them are worried about it.
The Bank of Canada announced on October 25th it would be holding its key lending rate at 5.0%, the second consecutive hold since two quarter-point increases were made over the summer. Since March of last year, the central bank has imposed an unprecedented number of rate hikes in an effort to reduce pandemic-fueled inflation, taking interest rates from historic lows to a more than two-decade high. While approximately three-quarters (74%) of Canadian mortgage holders currently have a fixed-rate agreement in place, higher interest rates have had a major impact on those with a variable-rate and hybrid mortgage.
Highlights - Province of Quebec
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28% of residential mortgage holders in the province will be renewing their lending agreement within the next year and a half. This means that close to 680,400 Quebecers will be renewing their mortgage loan by March 2025. Among them, 79% are concerned about their upcoming renewal
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94% of mortgagees in the province obtained their mortgage from a prime lender, the highest in the country
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75% of Quebec mortgagees currently have a fixed-rate mortgage (open or closed) and 21% opted for a variable-rate mortgage (open or closed)
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60% of variable-rate or hybrid mortgage holders say that higher interest rates have caused their mortgage to hit its trigger rate
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33% of variable-rate or hybrid mortgage holders in Quebec say that higher interest rates have put a major financial strain on their household; 42% say that increased rates have imposed minor financial strain
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In order to cope with higher mortgage payments, 45% of variable-rate mortgagees under financial strain have decreased their discretionary spending