Retirement used to mean freedom, relaxation—and a mortgage-free home. But that picture is changing for many Canadians.
A recent Royal LePage survey, conducted by Leger, reveals that nearly 3 in 10 Canadians planning to retire in 2025 or 2026 expect to carry a mortgage into retirement. That’s a major shift from past generations, where paying off the family home was a key milestone before leaving the workforce. In fact, only about 14% of senior households had mortgage debt in 2016, according to Statistics Canada—up from just 8% in 1999. The trend has been climbing steadily.
Why the shift?
Rising home prices, growing financial support for adult children, and increased living costs have all played a role. According to Royal LePage President and CEO Phil Soper, “burning the mortgage” was once the ultimate goal, but today’s retirees are navigating a more complex financial landscape. Many are still managing well—with help from investments, part-time work, or income from a working spouse.
Still, some are in a strong position: 45% of soon-to-be retirees have already paid off their mortgage, and 6% expect to be mortgage-free before they retire.
To Downsize or Not to Downsize?
When it comes to whether retirees are selling their homes and moving into smaller ones, Canadians are split. According to real estate professionals across the country, about half of those nearing retirement plan to downsize within two years, while the other half plan to stay put.
For many, the decision is personal. Some are excited by the idea of less upkeep and extra cash for travel or helping their kids buy a home. Others love the space they have and don’t see a reason to leave it behind—especially if there’s no urgent financial need.
Among those who do choose to downsize, condominiums are the most popular choice, followed by adult-lifestyle communities (55+) and then smaller detached homes.
Final Thoughts
Retirement today comes in many shapes and sizes. While mortgage-free living is still a goal for many, it’s no longer the only path. The important thing is finding what works for your lifestyle and financial situation.
If you’re nearing retirement and wondering whether to sell, downsize, or stay put, we’d be happy to help you explore your options. Whether it’s a smart move, a dream condo, or staying in the home you love—we’re here to guide you every step of the way.
