Approximately one-third of Canadians who are nearing retirement within the next two years anticipate continuing to make mortgage payments even after they have retired, as indicated by a recent study from Royal LePage.
The survey, involving 1,626 participants in Canada and conducted by Royal LePage in May, revealed that a small percentage of Canadians (2% in 2025 and 3% in 2026) are planning to retire soon. Among them, around 29% mentioned that they will still be paying off their mortgages during their retirement.
Less than half (45%) of soon-to-be retirees have completely paid off their mortgages, while only six percent expect to clear their mortgages before retiring.
Another 18% mentioned that they do not own their primary residence, and the remaining respondents were uncertain about paying off their mortgage before retirement.
Phil Soper, the CEO of Royal LePage, noted that this generation is more likely to carry mortgage debts that would have been unprecedented for their parents or grandparents. He also highlighted the impact of financial assistance from parents on the younger generation’s home ownership aspirations.
However, Soper mentioned that managing mortgage payments in retirement may not be burdensome for all Canadians due to diverse income sources like investments, part-time jobs, or a working spouse.
Among those nearing retirement (five percent of respondents) or those already retired (28 percent of respondents), there was an almost equal division between those planning to downsize and those not intending to do so.
Regarding downsizing preferences, 47 percent stated they do not plan to downsize within two years of retirement, while 44 percent expressed their intention to downsize. The remainder were undecided.
The most favored downsizing option was a standard condominium, with 43 percent leaning towards downsizing to a condo and 25 percent preferring a senior living community.
Only 16 percent indicated a preference for a detached home, while 11 percent favored an attached home. The rest were undecided.
Condo prices have been declining rapidly in some of Canada’s competitive housing markets. A report suggests that by the end of the year, condo prices in the Greater Toronto Area will have dropped by 15-20% compared to their peak in 2023.
