Many Quebec homeowners are nervous ahead of renewing their mortgage agreements. Although Quebec is coping better than the rest of Canada, many families will still face a noticeable increase in monthly payments.
“I don’t want this to happen to me”
Marc (he preferred not to give his last name) has just renewed his mortgage for three years at a fixed rate. His rate rose from 2.14% to 3.77%.
“My brother was on a variable rate, and it suddenly shot up—almost doubled. I don’t want the same thing to happen to me,” he says.
Michael Andersson has a similar story. “I was going to take a variable rate, but all the indicators, it seems to me, say that right now it’s too risky,” he explains. Michael also chose a three-year fixed rate.
Brokers report a mass exodus from variable rates
Mortgage broker Stéphane Bruyère sees the same pattern among his clients.
“Everyone is going for fixed rates,” he says. “People are so scared right now—everything that’s happening in the Middle East, gas prices, inflation, job loss. Even long-time clients who always chose a variable rate are now switching to fixed.”
The numbers speak for themselves: in 2022, 83% of his portfolio was variable rates. Today—only 28%.
Three years instead of five: betting on a decline
Desjardins economist Hendrik Vachon clarifies: Quebecers are choosing fixed rates, but for a shorter term than usual.
“The traditional five-year term is no longer as popular. People are holding on to the hope that rates will go down again,” he explains. “Three or four years are chosen more often. Nobody wants to tie themselves down for five years.”
Across Canada, 40% of new loans are taken out for terms from three to five years. The share of variable rates in new lending has fallen to about one third.
Quebec is holding up better than others
Across Canada, about 60% of mortgages must be renewed by 2026. For many families who took out a five-year fixed mortgage during the pandemic, monthly payments could rise by 15–20%, according to the Bank of Canada.
Nevertheless, Quebec is holding up better than Ontario and British Columbia. Quebec households are generally less indebted, housing prices did not rise as sharply, and mortgage delinquency rates remain relatively low. In addition, mortgage terms in Quebec have historically been shorter, meaning a significant share of loans has already gone through renewal.
In Toronto and Vancouver, the situation is noticeably more difficult. There, homeowners often carry a much heavier debt burden—many bought property at record prices at the height of the pandemic.
Conclusion. Rising rates have changed borrower behavior: caution is displacing optimism, and short fixed terms are becoming the new norm. Quebec is entering this period with fewer risks than other provinces—but anxiety in the market hasn’t gone away.
