Retirement used to mean freedom from the 9-to-5 – and from mortgage payments. But for nearly 30% of Canadians nearing retirement, that dream is shifting.
A new Royal LePage survey, conducted by Leger, reveals that 29% of Canadians planning to retire in 2025 or 2026 will still carry mortgage debt. For many, this means rethinking traditional ideas about retirement, financial freedom, and homeownership in later life.
Canadians are retiring later – and with more debt
Back in 2016, just 14% of senior-led households had a mortgage, according to Statistics Canada. That number has been steadily rising due to soaring home prices, delayed entry into the housing market, and new lifestyle expectations.
Now, Royal LePage reports that:
- 45% of Canadians nearing retirement have paid off their mortgage
- 6% expect to do so before retiring
- 29% will carry mortgage debt past retirement
The shift is clear: retiring with a mortgage is no longer the exception – it’s becoming part of the plan.
“While previous generations may have viewed mortgage-free retirement as the only option, today’s retirees tend to be more open-minded,” said Royal LePage CEO Phil Soper.
Many retirees are adapting by supplementing income through investments, part-time work, or dual-income households.
Later homebuying means later mortgage payoffs
Today’s homebuyers are older than ever. According to Royal LePage’s 2023 First-Time Homebuyer Report, 43% of first-time homebuyers were aged 35 or older – up from 33% in 2021.
That means longer amortization periods and fewer Canadians owning their homes outright by retirement.
Combined with higher average home prices and interest rates, it’s no wonder retirement debt is on the rise.
Retirement age is climbing, too
According to Statistics Canada, the average retirement age reached 65.3 in 2024 – up from 64.3 just four years earlier. With people living longer and staying healthier, many are opting to delay full retirement or shift to semi-retirement to keep up with financial obligations.
“Compared to their grandparents, today’s retirees are enjoying about fifty percent more years after turning 65,” said Soper. “It’s no surprise their attitudes toward home ownership have evolved with the times.”
Downsizing? Not everyone’s on board
Downsizing has long been promoted as a smart way to reduce costs and simplify life in retirement. But the Royal LePage survey shows that only 46% of Canadians plan to downsize within two years of retirement – while 47% do not.
Real estate professionals also report mixed trends:
- 44% see an even split
- 28% say most retirees choose to downsize
- 21% say most stay in their current homes
Regional breakdown:
- Manitoba & Saskatchewan: 46% say most retirees downsize
- Ontario & Quebec: 24% say most retirees stay put
- Alberta: 63% report a 50/50 split
Where retirees are moving
Among those who do downsize, the most common choices are:
- Condominiums (43%)
- Adult living communities (25%)
- Detached homes (16%)
Top priorities for retired homebuyers include:
- One-level living (38%)
- Proximity to healthcare & amenities (27%)
- Being near family (25%)
- Low-maintenance properties (19%)
- Covered parking (17%)
Preparing to downsize
For those planning a move, Royal LePage recommends:
- Measuring furniture for new spaces
- Decluttering clothes and décor
- Digitizing keepsakes
- Researching interprovincial relocation laws
- Budgeting for the move and updating healthcare, licenses, and services
They also remind sellers to complete tasks like mail forwarding, cleaning to broom-swept condition, and leaving appliance manuals for buyers.
The Bottom Line:
Retirement isn’t one-size-fits-all anymore. With more Canadians working longer, buying homes later, and balancing multiple income streams, carrying a mortgage into retirement has become part of the modern financial landscape.
Whether downsizing or staying put, the key is planning early – and being flexible with what retirement is supposed to look like.
Sources:
- Royal LePage Survey 2025
- Statistics Canada – Retirement Trends
- Royal LePage First-Time Buyer Report
- Statistics Canada – Senior Households with Mortgages
Canada Housing Market 
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