In the past, the golden years often came with a smaller home, a paid-off mortgage and the comfort of a simpler life. But those expectations no longer hold true for many Canadians approaching retirement, according to a new Royal LePage survey.
Nearly half of Canadians planning to retire in the next two years say they have no intention of downsizing—a surprising contrast to the long-held belief that retirement automatically triggers a move to a smaller, more manageable home. Still, 46 per cent say they will downsize. It’s a near-even split that reveals just how divided retirees are on what home means in later life.
“Downsizing in retirement is far from a given,” says Phil Soper, president and CEO of Royal LePage. “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.”
Condos are popular, but lifestyle comes first
Among those retirees who do opt to downsize, condos are the clear favourite, with 43 per cent of Royal LePage professionals naming them as the top choice among clients. Following behind are adult lifestyle communities (25 per cent) and detached homes (16 per cent).
But the real drivers aren’t necessarily property types, they’re lifestyle features. A single-level layout ranks highest among must-haves (38 per cent), followed by proximity to hospitals and amenities (27 per cent), closeness to family and friends (25 per cent) and perks like paid maintenance and covered parking.
Mortgage debt follows many into retirement
Another major shift: the assumption that retirement means being mortgage-free is increasingly outdated.
According to the same survey, 29 per cent of Canadians retiring by 2026 will still be making mortgage payments, a figure that has more than doubled over the past decade. In 2016, just 14 per cent of senior households had a mortgage; in 1999, it was only 8 per cent.
Today’s retirees, shaped by steep home prices and delayed entry into the housing market, are more comfortable carrying debt into their later years, Royal LePage says, especially if it means staying in a home they love or supporting their adult children’s home ownership journeys.
“While previous generations may have viewed mortgage-free retirement as the only option, today’s retirees tend to be more open-minded,” says Soper. “Many are still comfortably managing their expenses and servicing mortgage payments, with income from investments, part-time work, or a working spouse.”
Delayed milestones, evolving priorities
The survey also connects the dots between later homeownership and later retirement. In 2023, 43 per cent of first-time buyers were over 35, compared to 33 per cent in 2021. Meanwhile, the average retirement age in Canada reached 65.3 in 2024, up from 64.3 in 2020.
