Nearly three in 10 Canadians planning to retire within the next two years say they will continue making mortgage payments on their primary residence after leaving the workforce, according to a new Royal LePage survey.
The trend marks a significant shift from previous generations, with mortgage debt among senior households doubling over the past two decades. Statistics Canada data shows 14 per cent of households with income earners aged 65 and over had a mortgage in 2016, up from eight per cent in 1999.
The survey of 1,626 Canadians found that 29 per cent of those retiring in 2025 or 2026 expect to carry mortgage debt into retirement, while 45 per cent say their mortgage is currently paid off and another six per cent expect to pay it off before retiring.
Changing retirement landscape
“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,” said Phil Soper, president and CEO of Royal LePage. “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.”
The shift reflects broader changes in Canadian homeownership patterns. A 2023 Royal LePage report found 43 per cent of first-time homebuyers were aged 35 or older, compared to 33 per cent in 2021. The average retirement age has also increased to 65.3 years in 2024, up from 64.3 in 2020.
“Home price appreciation over the past 25 years has been a double-edged sword for today’s retirees,” Soper said. “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.”
Split decision on downsizing
The survey found Canadians are divided on whether to downsize in retirement, with 46 per cent planning to downsize within two years of retirement and 47 per cent choosing to stay in their current homes.
A separate survey of 471 Royal LePage real estate professionals revealed regional differences in downsizing trends. Manitoba and Saskatchewan lead the country with 46 per cent of respondents saying most retirees in their markets are downsizing, while Quebec and Ontario each had 24 per cent saying most retirees stay in their current homes.
For those who do downsize, condominiums are the most popular choice, selected by 43 per cent of real estate professionals, followed by adult living communities for those 55 and older at 25 per cent.
Key downsizing priorities
Real estate professionals identified the most important features for downsizing retirees:
- Single-level layout (38 per cent)
- Proximity to hospitals and community services (27 per cent)
- Proximity to family and friends (25 per cent)
- Paid maintenance services (19 per cent)
- Covered parking (17 per cent)
“Downsizing in retirement is far from a given,” Soper said. “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.”
Extended retirement years
The mortgage trend coincides with Canadians living longer after retirement. Soper noted that today’s retirees enjoy about 50 per cent more years after turning 65 compared to their grandparents.
“Compared to their grandparents, today’s retirees are enjoying about fifty per cent more years after turning 65,” he said. “They’re working longer, staying active, and in many ways, continuing the lives they led during their working years – just without the job.”
The Royal LePage survey was conducted by Leger between May 2-4, 2025, with a margin of error of plus or minus 2.4 percentage points, 19 times out of 20.
