Mortgage-free retirement? Not so for 29% of soon-to-be retirees
A third of Canadians approaching retirement in the next two years expect to keep paying their mortgages after they have stopped working, a new report by Royal LePage shows.
A survey of 1,626 Canadians conducted by real estate firm Royal LePage in May found that two per cent of Canadians expect to retire in 2025 and three per cent in 2026. Of these, around one-third (29 per cent) say they will continue to pay down their mortgage into their retirement years.
Less than half (45 per cent) of people retiring soon have already paid their mortgages off and only six per cent said they will be able to pay off their mortgages before retirement.
Another 18 per cent said they do not own their primary residence, and the rest said they either don't know if they'll pay off their mortgage before retirement or don't know.
Story continues below advertisement
'This generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents,' said Phil Soper, CEO of Royal LePage.
Soper said while the 'bank of mom and dad' has helped younger Canadians, it is taking a toll on some getting closer to retirement.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday. Sign up for weekly money newsletter Sign Up
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy
'Our research confirms they are also much more likely to have provided financial assistance to their children to assist in their home ownership dreams,' he said.
4:28
House hunting amid economic uncertainty
However, this will not be as much of a strain on some Canadians, Soper said.
'While previous generations may have viewed mortgage-free retirement as the only option, today's retirees tend to be more open-minded. 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,' he said.
Story continues below advertisement
Of those approaching retirement (five per cent of respondents) or those who have already retired (28 per cent of respondents), there was a roughly even split between those who plan to downsize and those who don't.
'Downsizing in retirement is far from a given. For many homeowners, the decision to stay put or move to a smaller property is influenced by a combination of economic realities, lifestyle needs, and personal attachments,' said Soper.
According to the report, 47 per cent said they don't plan to downsize withing two years of retiring, while 44 per cent said they do. The rest were not sure.
The most popular downsized dwelling was a standard condominium, with 43 per cent saying they would prefer to downsize to a condo and a quarter (25 per cent) preferring to downsize to an senior living community.
Only 16 per cent said they would live in a detached home and 11 per cent said they would prefer live in an attached home. The rest were undecided.
Condominium prices have been dropping rapidly in some of Canada's hottest housing markets. According to one report, condo prices will have dropped by 15-20 per cent in the Greater Toronto Area by the end of the year, compared to a 2023 high.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Observer
33 minutes ago
- National Observer
Toronto financial institutions must do more to advance the energy transition
There is no doubt Canadians are absorbed by the many challenges related to the trade war, the attack on sovereignty and bringing the Stanley Cup back home. While each of these issues demand our attention, Canadians concerned about the American desires for territorial aggrandizement should not place climate-change action on the back burner. Despite our neighbours from the south abandoning the fight against climate change and proceeding to amplify the wicked problem, it is perhaps the most opportune time for Canadians to ensure our financial institutions are aligned to meet net-zero targets as soon as possible. Toronto and Montreal have historically shared the financial centre of Canada via two distinct approaches. While Toronto takes a more traditional path of hosting the headquarters of many of the country's banks, insurers and pension funds, Montreal is the leader in making Canada's financial system more environmentally and socially sustainable. A 2023 report from the University of Toronto found that in 2022, Bay Street-based financial institutions were responsible for financing 1.44 billion tonnes of carbon dioxide equivalent. As the study explains, if Bay Street were a country, it would be equivalent to the fifth-largest polluter in the world, behind only China, the US, Russia and Japan. This report was inspired by a 2019 report by Greenpeace and the World Wildlife Fund, which showed that London comparatively financed just over half of those financed by Toronto institutions, despite London having a larger financial sector in terms of dollars at the time. Despite this, until very recently, the City of Toronto has not made significant strides to address the climate pollution of its financial sector. By contrast, Montreal has been a clear frontrunner on shifting the financial sector toward sustainability and reducing climate pollution. Last month, Montreal displayed its leadership on sustainable finance at its annual Sustainable Finance Summit (Sommet de la finance durable). This event drew experts from across Canada to discuss ambitious leadership initiatives and investments toward a more sustainable financial system. One such initiative is Quebec's Sustainable Finance Roadmap, which aims to modernize the province's financial sector for social considerations and climate action. Furthermore, Quebec-based Desjardins and Caisse de dépôt et placement du Québec (CDPQ) are two of the most forward-looking financial institutions on climate change to be found globally: Desjardins leads Canada in its ratio of sustainable energy financing to fossil fuels, while CDPQ has nearly completed an exit from coal and oil investments. Other cities globally are taking their competitive edge even further. London ranks first in the Global Green Finance Index (GGFI), while other cities have made significant strides forward. Notably, Singapore's 2019 green finance action plan helped it climb from number 23 to second in the Global Green Finance Index in just five years. Auckland has seen notable success in issuing its own green bonds to finance green public infrastructure, and in 2021, three of New York City's pension funds fully divested from fossil fuels, collectively divesting $4 billion in public securities. Canada just ensure our financial institutions are aligned to meet net-zero targets as soon as possible, write Stephen Kibsey and Robert Soden Toronto can fix its climate pollution problem. In late March 2025, the Toronto city council made a decisive step toward advancing as a leader in sustainable finance by adopting a new motion ( on the matter. This would establish a sustainable finance hub in Toronto, require the city to commission a report on best practices from peer cities in partnering with the financial sector on climate mitigation, and require the city to encourage federal and provincial regulators to set ambitious climate-aligned financial regulations. Overall, Canada is well-positioned to attract green investment and emerge as a leading North American destination for climate-aligned capital and financial innovation. A strong, predictable and rules-based environment is vital to attracting global investment in the energy transition. Looking forward, Toronto should advance the recommendations from the sustainable finance motion and help advance policy that would enable the financial sector to decarbonize its financial portfolios. Montreal should continue to provide an example and collaborate with Toronto to achieve successful climate-aligned finance. Canada must use the momentum it provides to build a stable regulatory environment and work to become North America's sustainable finance leader. With lifelong sustainable finance expert Mark Carney now serving as Canada's prime minister, we have both the expertise and the political opportunity to lead on stronger rules for climate-aligned finance. The cities of Toronto and Montreal can, and should, play an important role in encouraging Carney to show credibility on climate-related financial rules, which is the issue he built his career on before joining Canadian politics. As other countries are reversing action on climate change, the time to continue building an economic edge in financing the energy transition is now.
Cision Canada
42 minutes ago
- Cision Canada
Fraser Institute News Release: AI can help mitigate shrinking labour force by increasing productivity of existing workers and adding new ones
VANCOUVER, BC, June 10, 2025 /CNW/ - As Canada's labour force shrinks due to aging and slowing rates of immigration, artificial intelligence (AI) can help by increasing the number of available workers and improving worker productivity, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. "While there's a common perception that AI will eventually lead to mass unemployment, it actually opens the door to the labour market for people who may have been on the outside looking in," said Morley Gunderson, professor emeritus of economics at the University of Toronto and author of Can AI Mitigate Our Labour Force Problems? For example, AI can facilitate more effective job-matching between employers and job seekers including retirees who want to return to work, students who want part-time jobs, and new immigrants. AI can also improve employment prospects for people with disabilities by equipping employees with assistive technologies (screen readers, speech recognition software, etc.) and helping make driverless vehicles, "smart" wheelchairs and other AI-powered resources more widely available. At the same time, AI can help increase productivity growth, which has stagnated in Canada. For example, AI can help connect small and dispersed geographical markets with larger commercial centres, facilitate trade (within Canada and internationally), help small firms grow, and increase the ability of scientists and engineers to develop innovations that fuel productivity growth. "Rather than unduly fearing AI, Canadians should welcome the promise of AI to increase our ability to produce goods and services and improve our living standards," said Steven Globerman, senior fellow at the Fraser Institute. The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit SOURCE The Fraser Institute
Cision Canada
an hour ago
- Cision Canada
As U.S. Uncertainty Sparks Travel Boom in Canada, RVezy Urges Canadian RV Owners to Cash In on Soaring Demand Français
With 300% increase in U.S. travelers to Canada, RV rental platform RVezy calls on Canada's 2 million RV owners to list their vehicles and earn thousands this summer OTTAWA, ON, June 10, 2025 /CNW/ - Political instability south of the border is fueling a surge in Canadian travel—and RV owners have a golden opportunity to cash in. RVezy, Canada's leading peer-to-peer, RV rental platform, is reporting a 300% year-over-year spike in bookings from American travelers, along with a major increase in interest from overseas visitors. As international and domestic demand hits record levels ahead of the summer season, the company is issuing a national call to action: RV owners, list your RV now and earn thousands this summer. "With over 2 million RVs sitting idle across Canada and demand hitting all-time highs, we need more RV owners to list—today," said Michael McNaught, CEO of RVezy. "This isn't just about travel—it's about helping Canadians earn meaningful income while supporting our national and local tourism economy." Big Earnings, Big Impact: Renting Pays Off RV owners on RVezy earn an average of over $10,000 per year, with many earning significantly more during the peak summer months. Yet most RVs sit unused for 11 months of the year. With rising prices and economic pressures affecting households across the country, renting out an RV is an easy, practical way to generate additional income. And because travelers spend on average $300 per day in local communities, every RV trip fuels spending at local shops, restaurants, campgrounds, and small tourism operators. "We're seeing this incredible wave of interest in Canada—not just from Americans, but from international visitors looking for safe, scenic, flexible travel," added McNaught. "Every RV rental helps support Canadian families—on both sides of the keys." No Worries, Full Protection: RVezy's All-Inclusive Approach For RV owners concerned about liability or damage, RVezy provides full insurance coverage that protects the entire value of the RV. Every rental includes 24/7 roadside assistance and is backed by a dedicated Host Experience team to guide owners through every step of the process. RVezy is a proudly Canadian company— founded by Canadians, operated by Canadians, and located in Canada, RVezy is committed to building a stronger local travel economy. Call to Action: List Your RV Before Peak Season Hits With unprecedented traveler demand and limited vehicle availability, RVezy urges RV owners across the country to list now—especially in popular gateway regions like British Columbia, Alberta, Ontario, Quebec and the Maritimes. Whether you're an occasional camper or a seasoned RV enthusiast, listing your RV this summer could make a serious difference.
