Almost one-third of Canadian retirees will be paying a mortgage: Report

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Paying a mortgage will be a cost that three out of every 10 retirees must manage in 2025 or 2026, according to a Royal LePage report.

The real estate company said Tuesday that 29% of those planning to retire this year or in 2026 will still be paying a mortgage when they stop work.

“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 Royal LePage CEO and President Phil Soper.

He insisted that while discharging a mortgage was once “the economic finish line,” many seniors have now figured out how to keep up payments while covering their other bills.

“While previous generations may have viewed mortgage-free retirement as the only option, today’s retirees tend to be more open-minded,” Soper added. “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.”

The report also says 46% of Canadians approaching retirement say they plan to downsize their home and 59% of Royal LePage real estate agents in Ontario say condominiums are the most popular property for retirees looking to live in smaller places.

Royal LePage experts in Ontario say that single-level layouts (38%), community amenities and services (28%), and proximity to family and friends (24%) are most important to downsizers.

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