Retirement is often pictured as a time of freedom—no alarm clocks, mornings on the golf course, or afternoons with family. However, according to a recent Royal LePage survey conducted by Leger, many Canadians heading into retirement are still shouldering mortgage debt. This is a reality that contrasts sharply with the traditional ideal of a mortgage free golden age.
📊 A surprising shift: mortgages into retirement
- According to the survey, nearly 30% of Canadians retiring in 2025 or 2026 expect to take their current mortgage with them into retirement.
- That’s a stark rise—compared to 14 % of 65‑plus households in 2016 and just 8 % in 1999
- In contrast, 45% of those planning retirement report being mortgage‑free, while 6% aim to pay off ahead of time.
What’s behind this change? Two major factors stand out:
- Market gains—while long-term price growth has created equity, it also means higher borrowing to afford homes.
- Housing affordability—people are entering home ownership later and with bigger mortgages.
Stay or downsize?
The traditional blueprint—sell the big family home, downsize to a cozy condo—has shifted. Among soon-to-be retirees:
- 46% plan to downsize within two years of retiring.
- 47% say they won’t downsize
Real estate pros are split: 44 % see an even split in their markets, with 28 % leaning toward downsizing and 21 % of retirees toward staying put and retiring in place.
Of those downsizing, preferences include:
- 43% choose standard condominiums
- 25% opt for adult‑living (55+) communities
- 16% move into detached homes
📊 Why retirees are keeping—or taking on—mortgages
Phil Soper, CEO of Royal LePage, points out that today’s retirees are more adaptable than previous generations:
- Flexibility over finality: Carrying a mortgage isn’t always negative—it may mean leveraging equity or maintaining lifestyle choices.
- Diverse income streams: Many retirees supplement pensions with investments, part-time work, or spousal income
- Intergenerational support: Older homeowners have helped younger family members buy homes, affecting their own mortgage timelines
- Longer retirements: Canadians are retiring later (average age 65.3 in 2024, up from 64.3 in 2020), and living decades afterward, so staying invested in home equity and staying in homes longer may make sense
The new retirement playbook
- Reframe mortgage debt: It’s no longer a burden—it can be a tool if managed wisely.
- Live intentionally: Deciding whether to downsize depends on maintaining community, convenience, and hobbies.
- Plan income streams: Understand how mortgage payments fit into retirement income from pensions, investments, and work.
- Explore housing options: Take time to evaluate condos, retirement communities, or staying put—each has trade‑offs in space, cost, and management.
Retirement isn’t one-size-fits-all anymore—and neither is mortgage-free living. For many Canadians, carrying a mortgage into retirement is less a problem and more a strategic choice.
If you’re facing the same crossroads—keeping your home or downsizing, carrying debt or paying off—understand your financial picture, lifestyle goals, and long-term income plan. The smart retirement isn’t necessarily defined by zero mortgage—it’s built on clarity, flexibility, and choice.
You can read the full Royal LePage PRESS RELEASE and SURVEY statistics by clicking here.
Let’s Make Your Next Move Together
If you’re navigating these decisions and want to explore your options, I’d love to help with insights or a tailored strategy, and help you navigate this shifting market with confidence.
Call me at 519-824-9050 ext. 235, and together we’ll turn your real estate dreams into an address!
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