In line with a 2024 Royal LePage survey, 30% of Canadians planning to retire within the subsequent two years anticipate to hold mortgage debt into retirement, up from simply 14% in 2016. That’s a dramatic shift in lower than a decade, and a powerful sign that Canada’s retirement panorama is altering.

So what’s behind this development, and do you have to be involved in the event you’re heading into retirement with a mortgage?

Why are extra Canadians retiring with mortgage debt?

A mix of rising dwelling values, later-life borrowing, and altering retirement expectations is reshaping what retirement appears like in Canada. Based mostly on the Royal LePage research and what we see day by day with our shoppers, listed below are the large drivers:

Homeownership is dearer than ever

Canadian dwelling costs have climbed considerably over the previous 20 years. Many pre-retirees merely haven’t had sufficient runway to completely repay their mortgages, particularly in the event that they purchased later in life or refinanced through the low-rate period.

Many Canadians are serving to their youngsters

Royal LePage discovered that 48% of Canadians aged 55+ who’ve youngsters say they’ve helped them financially, usually with a down fee. Some took out dwelling fairness loans or refinanced to take action, which means they’re now carrying that debt into retirement.

Retirement timelines are shifting

Almost one-third of soon-to-be retirees mentioned they might take into account delaying retirement particularly to handle their mortgage. Others plan to hold the debt and finances accordingly, signalling a rising consolation with retiring whereas nonetheless in reimbursement mode.

Individuals are tapping into dwelling fairness

Whether or not it’s funding a renovation, protecting way of life bills, or offering intergenerational help, many Canadians are utilizing HELOCs, cash-out refinances, and even reverse mortgages, instruments that usually depart a stability on the books into retirement.

Is it unhealthy to retire with a mortgage?

Not inherently. Like most monetary questions, the reply is determined by context, your earnings, belongings, targets, and whether or not you’ve a plan.

When it would make sense:

Your retirement earnings simply helps the funds
You’re utilizing the mortgage strategically, resembling serving to household or sustaining liquidity
You’ve gotten enough dwelling fairness and diversified retirement belongings
You’ve gotten a transparent reimbursement or debt-reduction technique

When it’s dangerous:

Mortgage funds pressure your mounted earnings
You’re dipping into RRSPs or credit score traces to remain afloat
There’s no finish plan for the debt
You’re weak to rate of interest will increase or shock bills

What are good mortgage methods for retirees

For those who’re approaching retirement with a mortgage, or already in it, there are alternatives to maintain the debt manageable and aligned along with your way of life.

1. Downsize to reset your monetary image

Promoting a big or high-maintenance dwelling can wipe out your mortgage and unlock capital. It’s one of the crucial efficient methods to enhance money circulate whereas retaining your fairness working for you.

2. Think about a reverse mortgage

A reverse mortgage can supply entry to fairness with out month-to-month funds, making it simpler to remain in your house comfortably. It’s not for everybody, however in the suitable case, it affords actual peace of thoughts.

3. Refinance earlier than you retire

For those who’re nonetheless working, it’s possible you’ll qualify for higher phrases or an extended amortization, decreasing month-to-month funds and supplying you with flexibility as you transition into retirement.

4. Discuss to a mortgage skilled

Don’t go it alone. A mortgage dealer who understands each retirement earnings planning and lending standards will help construction an answer that protects your way of life, and your long-term plans.

The brand new retirement actuality in Canada

The Royal LePage research makes one factor crystal clear: the times of coming into retirement mortgage-free are fading quick. For at the moment’s retirees and people arising behind them, the brand new norm entails carrying some degree of debt, and being considerate about the best way to handle it.

So ask your self:

Can your pension or retirement earnings safely cowl your mortgage?
Are you holding a manageable quantity of debt, or is it limiting your monetary flexibility?
Have you ever stress-tested your retirement plan for future fee adjustments or money circulate shifts?

Retiring with a mortgage isn’t ideally suited, however it’s additionally not a dealbreaker. The hot button is to go in with eyes vast open, and a plan that works for your life.

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Final modified: July 18, 2025