Nearly One-Third of Soon-to-Retire Canadians Expect to Carry Mortgages into Retirement: Royal LePage Report

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By Financial Outlook News | May 29, 2025

TORONTO — A significant number of Canadians nearing retirement say they expect to continue making mortgage payments well into their post-employment years, according to a new survey by real estate firm Royal LePage.

The survey, conducted in May with 1,626 respondents, found that roughly one-third (29%) of those who plan to retire in 2025 or 2026 believe they will still be paying off a mortgage after leaving the workforce.

Despite the traditional ideal of entering retirement mortgage-free, the study revealed that only 45% of soon-to-be retirees have fully paid off their home loans. An additional 6% anticipate clearing their mortgages just before they retire. Meanwhile, 18% of respondents said they do not currently own their primary residence, while others remained uncertain about their future mortgage status.

Phil Soper, CEO of Royal LePage, noted that retirement looks quite different for the current generation compared to their parents and grandparents. “This generation is far more likely to have carried mortgage balances that would have been unimaginable in previous decades,” he said.

He also pointed out that many older Canadians have been financially supporting their adult children in entering the housing market, which has impacted their own financial stability. “Our research shows a notable trend — many nearing retirement have provided significant financial help to their children, often at the cost of their own long-term plans,” Soper added.

However, Soper emphasized that carrying a mortgage into retirement isn’t necessarily a hardship for everyone. “Many retirees are managing comfortably thanks to investment income, part-time work, or support from a working spouse,” he said. “Today’s retirees are more flexible in how they view financial security.”

Downsizing Not a Given
Among Canadians either preparing for or already in retirement — 5% and 28% of respondents, respectively — views on downsizing were mixed. While 44% plan to move to smaller homes within two years of retiring, 47% intend to stay in their current residences. The remaining 9% were undecided.

“Downsizing is often assumed to be the norm, but many people opt to stay put due to lifestyle preferences, emotional attachment, or rising real estate costs,” said Soper.

For those looking to downsize, the most popular option was a condominium, preferred by 43% of respondents. Another 25% expressed interest in moving to a senior living community, while only 16% said they would downsize to a detached home, and 11% preferred an attached home.

This comes as condo prices in some of Canada’s largest housing markets — including the Greater Toronto Area — are projected to fall by 15–20% by the end of 2025, compared to 2023 peaks, making them more appealing to downsizing retirees.

The Financial Outlook for Canada’s Retirees
As retirement patterns shift and financial responsibilities extend beyond traditional norms, the definition of financial readiness continues to evolve. While many Canadians will enter retirement with ongoing debt, they are also doing so with diverse sources of income and more flexible lifestyles.

Royal LePage’s findings highlight the complex realities facing Canada’s aging population — from mortgage burdens to housing preferences — and suggest that retirement planning now demands a more personalized, adaptive approach than ever before.