Three in ten Canadians planning to retire within the next two years say they will carry a mortgage into retirement
Retirement marks an exciting new chapter for many Canadians, one filled with more personal time, the freedom to explore new interests, and possibly travel. For homeowners, it has traditionally also meant making the final payment on the family property and entering retirement mortgage-free. However, for a growing number of Canadians, that milestone is no longer a given.
A recent Royal LePage survey, conducted by Leger,1 suggests a new housing reality for older Canadians is taking shape. According to the survey, nearly three in ten Canadians (29%) who are planning to retire in 2025 or 2026 say they will continue to make mortgage payments on their primary residence into retirement. The trend seems to be accelerating, as affordability continues to challenge Canadians of all ages: only half as many senior households had mortgage debt approximately ten years ago. According to Statistics Canada, 14% of households with income earners aged 65 and over had a mortgage in 2016, up significantly from eight per cent in 1999.2
“The benefits of entering retirement as a homeowner with a paid-off mortgage are clear: more disposable income, insulation from interest rate changes, and even the emotional security that comes from knowing you’ll always have a place to live. In the era of rotary phones and station wagons, burning your mortgage was the economic finish line. Today’s retiree reality is much more nuanced,” said Phil Soper, president and CEO, Royal LePage.
Nearly half of those planning to retire in 2025 or 2026 (45%) say that their mortgage is currently paid off, while another 6% say their mortgage will be paid off before retirement.
Forty-six per cent of respondents approaching retirement say they will downsize their home within two years of ending full-time employment, while 47% say they will not.
“Home price appreciation over the past 25 years has been a double-edged sword for today’s retirees,” said Soper. “On one hand, it has delivered unprecedented financial gains. On the other, this generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents. Our research confirms they are also much more likely to have provided financial assistance to their children to assist in their home ownership dreams.
“While previous generations may have viewed mortgage-free retirement as the only option, today’s retirees tend to be more open-minded. Traditional employment income may have dried up, but many are still comfortably managing their expenses and servicing mortgage payments, with income from investments, part-time work, or a working spouse.”
Should I stay or should I go? Retirees divided on downsizing
The decision to downsize in retirement is a highly personal one based on lifestyle preferences, and Canadians are largely divided on the matter, according to a recent Royal LePage survey of real estate professionals across the country.3 Nationally, 44% of respondents say that, in their respective markets, there is an approximately even split between those looking to downsize and those choosing to stay in their current homes; 28% say that a majority of people nearing or entering retirement are downsizing to a smaller home; 21% say that a majority of retirees are choosing to remain in their current home.
“Downsizing in retirement is far from a given. For many homeowners, the decision to stay put or move to a smaller property is influenced by a combination of economic realities, lifestyle needs, and personal attachments,” said Soper. “Some see a smaller home as a practical and liberating choice – less maintenance, more liquidity to fund travel or to support their children’s home ownership journey. But for others, there’s no compelling financial reason to move. They enjoy the space that comes with a detached home – for gardening, entertaining, or simply storing the gear that goes along with their hobbies. Many take pride in the home they’ve worked decades to own outright, and see no reason to give it up.”
Of those Royal LePage experts who say that a majority of people nearing or entering retirement are downsizing, 43% say that standard condominiums are the most popular property type among this cohort, followed by adult living communities that cater to those aged 55 and up (25%), and detached properties (16%).
Read the full press release and review the data charts for more information and regional insights:
Royal LePage resources for those downsizing their home
Planning to downsize your home this year? Royal LePage has published a number of online resources available at the following links:
1An online survey of 1,626 Canadians ages 18+ was completed between May 2-4, 2025, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.4 per cent, 19 times out of 20.
2Statistics Canada, Debt and assets among senior Canadian families, Survey of Financial Security, April 3, 2019
3A national online survey of 471 Royal LePage brokers and sales representatives serving buyers and sellers in Canada was conducted between May 7, 2025, and May 14, 2025.