A significant number of Canadians planning to retire in the next two years anticipate still owing money on their homes, according to a new survey, highlighting the impact of persistent housing affordability challenges on retirement planning. This trend suggests a shift in traditional retirement expectations, where being mortgage-free was often a key financial goal.
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Key Takeaways:
- Around 29% of near-retirees expect to have a mortgage in retirement.
- Affordability issues and delayed homeownership are major factors.
- Opinions are split on downsizing plans post-retirement.
More Canadians Facing Retirement with Housing Debt
The Royal LePage survey, conducted by Leger, found that approximately three in ten (29%) Canadians who plan to retire within the next two years anticipate carrying a mortgage into their retirement phase. This figure indicates a substantial portion of the upcoming retiree population may face continued housing payments alongside managing retirement income.
Canadian near-retirees considering home finances before retirement
This evolving landscape is directly linked to Canada’s ongoing housing affordability crisis. Rising home prices and borrowing costs have made it challenging for many to enter the market earlier in life or pay down debt quickly, pushing mortgage timelines closer to or even into retirement years.
Why This Matters for Retirement Security
“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,” stated Phil Soper, president and CEO of Royal LePage. The survey findings suggest that these traditional benefits may be out of reach for a growing segment of future retirees.
For individuals carrying a mortgage into retirement, managing cash flow becomes even more critical. Retirement income often differs from employment income, and having a significant fixed housing cost can impact everything from daily expenses to travel plans and healthcare needs.
For further reading on retirement planning, explore our guide to Understanding Retirement Income Streams.
Differing Paths to Retirement
While 29% expect to have a mortgage, the survey also revealed that nearly half (45%) of Canadians planning to retire soon have already paid off their mortgage. An additional six per cent are optimistic they will be mortgage-free before officially leaving the workforce.
Beyond mortgage status, future retirees also show differing views on their post-retirement housing situation. The survey found that 46% of respondents nearing retirement intend to downsize their home within two years of retiring, potentially to reduce costs or upkeep. However, a nearly equal number (47%) indicated they have no plans to downsize. This split highlights varied personal preferences and financial situations among the near-retiree population.
Learn more about housing trends in our analysis of Canada’s Latest Housing Market Forecasts.
Survey Methodology
The findings are based on an online survey of 1,626 Canadian adults conducted by Leger between May 2 and 4, 2025.
The Outlook for Future Retirees
The trend of carrying mortgages into retirement underscores the increasing financial pressures faced by many Canadians. As housing costs remain high, prospective retirees may need to adjust their financial plans, consider working longer, or explore different housing options to ensure financial security in their later years. This survey serves as a timely indicator for both individuals planning their retirement and policymakers addressing housing affordability and retirement readiness.
Considering your own retirement plans? Read our tips on Financial Planning Steps Before Retirement.
