Nearly a third of Canadians retiring within the next two years said they won’t have their home paid off. Only half as many senior households had mortgage debt about ten years ago.
In a new Royal LePage survey, conduced by Leger, 46 per cent of respondents approaching retirement in 2025 and 2026 plan on downsizing. The majority of experts noted that condos are the most popular property type among this cohort, followed by adult living communities.
Yet 47 per cent have no plans to downsize.
“Home price appreciation over the past 25 years has been a double-edged sword for today’s retirees,” said Royal LePage CEO Phil Soper. “On one hand, it has delivered unprecedented financial gains. On the other, this generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents. Our research confirms they are also much more likely to have provided financial assistance to their children to assist in their home ownership dreams.
“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.”
Statistics Canada reported the average retirement age was 65.3 in 2024, up from 64.3 in 2020. Canadians are entering the housing market later, increasing the odds of future generations of retirees carrying a mortgage further into retirement.
“Compared to their grandparents, today’s retirees are enjoying about fifty per cent more years after turning 65,” said Soper. “They’re working longer, staying active, and in many ways, continuing the lives they led during their working years – just without the job. It’s no surprise their attitudes toward home ownership have evolved with the times. With people buying their first homes later and working longer, it’s increasingly common for Canadians to carry a mortgage well into retirement, often by choice rather than necessity.”
To downsize or not to downsize
Canadians are largely divided on the matter of downsizing, with 44 per cent of respondents saying, in their respective markets, there is an approximately even split between those looking to downsize and those choosing to stay in their current homes; 28 per cent say that a majority of people nearing or entering retirement are downsizing to a smaller home; 21 per cent say that a majority of retirees are choosing to remain in their current home.
Manitoba and Saskatchewan have the highest percentage of respondents in Canada who say the majority of retirees are choosing to downsize. Quebec and Ontario have the highest percentage of respondents who say the majority of retirees are choosing to remain in their current homes, each at 24 per cent. Sixty-three per cent of respondents in Alberta say there is an even split between those downsizing and those opting to stay in their current homes.
The most important features among downsizers are a single-level layout, followed by proximity to hospitals, community amenities and services, and proximity to family and friends. Paid maintenance services and covered parking were lower on the list.
“Some see a smaller home as a practical and liberating choice – less maintenance, more liquidity to fund travel or to support their children’s home ownership journey,” noted Soper. “But for others, there’s no compelling financial reason to move. They enjoy the space that comes with a detached home – for gardening, entertaining, or simply storing the gear that goes along with their hobbies. Many take pride in the home they’ve worked decades to own outright, and see no reason to give it up.”
