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Global News
11 hours ago
- Business
- Global News
Paying mortgage into retirement? Here's how you could plan your finances
A generation ago, it would have been unthinkable for many Canadians to carry the mortgage on their home into retirement. But for many on the cusp of retirement now, that's no longer the case. 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. 'Canadians today are much more inclined to carry debt because either working later into their lives or they've got some more disposable income that they can utilize to pay these things off down the road. But they're not just saying, 'I want to have my home paid off,'' said Shawn Zigelstein of Royal LePage. Canadians are also buying their homes a lot later in life, one financial planner said. Story continues below advertisement 'People are buying homes later and now they also have the option for a 30-year amortization. That pushes mortgage payments further into what used to be the traditional retirement years,' said Jason Evans, whose firm offers financial planning advice for retirement. Bloom Financial works exclusively with Canadians aged 55 or over and CEO Ben McCabe said a large part of his clientele is now retirees looking for options on how to pay down their mortgage. 'For 80 per cent of the clients that we speak to at Bloom, that is a situation that they're in,' he said. 2:06 Missed debt payments reach highest level since 2009: Equifax How can you plan? 'Retiring with a mortgage is possible, but there are some pitfalls to watch out for,' Evans said. Story continues below advertisement Evans recommends waiting until you're 70 to start drawing Canada Pension Plan benefits. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The first is the temptation to start CPP benefits early. While this can help with cash flow, it means smaller CPP payments for life. For many people, waiting until age 70 leads to higher monthly income and would provide them with the most value from the program,' he said. He said some older Canadians might want to dip into investments to pay off mortgages, but they need to watch the markets carefully. 'A mortgage also means higher monthly expenses in retirement. To cover those costs, retirees may need to take out more from their investments. That can work when markets are strong, but during a downturn, it might force them to sell at a loss just to pay the bills,' he said. McCabe said the problem some Baby Boomers face is that there is a huge gap between how much their home is worth and the amount of liquid cash they hold. 'They've never earned more than $30,000 or $40,000 a year in their career, but they're sitting on a $2-million home because they happened to buy a house in Little Portugal (in Toronto) in the '70s,' he said. 'There's this disproportionate amount of real estate wealth versus liquid wealth or income,' he said. Story continues below advertisement An option that some homeowners can exercise to get some cash in hand is a HELOC – a home equity line of credit. As the name suggests, a HELOC is a form of credit that you can take out on your home. However, McCabe said it might not be for you if you're already well into your retirement. 'It's a better solution for younger people who have employment income and can service the interest payment that's required on that HELOC,' he said. 5:49 Creating a Financial Plan for Retirement How do reverse mortgages work? A financing option available almost exclusively for Canadians over 55 is a reverse mortgage. Story continues below advertisement 'A reverse mortgage is a loan against one's home. It's only available if you're a senior,' McCabe said. The key difference between a reverse mortgage and any other kind of financing option is that there are no monthly payments. 'The loan isn't due until you pass away or until you sell your home. So effectively, until you no longer occupy that home as your principal residence,' he said. He said many older Canadians use their reverse mortgage to replace the primary mortgage on their homes. 'Effectively, you'd be replacing a mortgage that has monthly payment obligation with a mortgage that doesn't have one,' he said. He gave the example of a retiree with a household income of $4,000 a month, with $1,500 going to the bank every month for a mortgage payment. 'Now all of a sudden, you have that full $4,000 of income in your net income that you can apply towards your living expenses and living well retirement,' he said. 2:05 Business Matters: Canadian home sales fell in February amid tariff uncertainty Downsizing According to the Royal LePage report, 47 per cent said they don't plan to downsize within two years of retiring, while 44 per cent said they do. The rest were not sure. Story continues below advertisement 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 a 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 to 20 per cent in the Greater Toronto Area by the end of the year, compared to a 2023 high. 'Downsizing can be a good option for some. However, it can sometimes be challenging to find a suitable next home at a lower price point,' Evans said. 'Moving to a new area is often required to free up a meaningful amount of equity. If downsizing is part of a person's retirement plan, it's important to keep an eye on the real estate market and consider a few different housing options,' he said.
CTV News
3 days ago
- Business
- CTV News
Plan on retiring but still paying off your mortgage? We want to hear from you
A recent Royal LePage survey, conducted by Léger, shows nearly a third of Canadians retiring within the next two years won't have their home paid off. (iStock / Getty Images Plus) Are you nearing retirement and still paying off your mortgage? You're not alone. A new Royal LePage survey, conducted by Leger, reveals a shifting financial reality for Canadians on the cusp of retirement. Nearly three in 10 Canadians (29 per cent) planning to retire in the next two years say they'll still be making mortgage payments when they leave the workforce, with almost half (47 per cent) saying they don't intend to downsize their homes. Statistics Canada data also shows that the average retirement age in the country has gradually increased, up to 65.3 in 2024 compared to 64.3 in 2020. Are you approaching retirement with mortgage debt still on the books? Are you planning to stay in your current home, or are you considering a move to a smaller space? Whether you've made your move, are in the midst of planning, or are trying to figure it all out, we want to hear from you. Share your story by emailing us at dotcom@ with your name, general location and phone number in case we want to follow up. Your comments may be used in a story. The online survey of 1,626 Canadians aged 18 and up was conducted between May 2 and May 4, 2025, using Leger's online panel that has approximately 400,000 members nationwide and a 90 per cent retention rate.
CTV News
4 days ago
- Business
- CTV News
Retiring with or without a mortgage: Affordability a challenge for Canadians of all ages
While many may consider retirement a sign of freedom, some say today's reality tells a different story, Noovo Info reports. According to a recent Royal LePage survey, conducted by Léger, three out of 10 Canadians who plan to retire in 2025 or 2026 say they will continue to pay their mortgages once they retire. Ten years ago, half of senior households had mortgage debt, according to Statistics Canada data highlighted by Royal LePage. In 2016, 14 per cent of income households with occupants 65 and older had a mortgage, a significant increase from eight per cent in 1999. 'The benefits of entering retirement as a homeowner who has paid off their mortgage are clear: more disposable income, protection from interest rate fluctuations, and even the emotional security of knowing you'll always have a place to live,' said Phil Soper, president and CEO of Royal LePage. He explains that real estate price appreciation over the last 25 years has been 'a double-edged sword' for today's retirees. 'On one hand, it has led to unprecedented financial gains. On the other hand, this generation is much more likely to have mortgage balances that would have been unimaginable compared to their parents or grandparents,' he said. 'Our research confirms that they are also much more likely to have to provide financial assistance to their children to help them buy their own homes.' Soper says he also believes that while previous generations saw mortgage-free retirement as the only option, today's retirees are much more open-minded. 'While traditional employment income may have dried up, many are still able to comfortably manage their expenses and pay off their mortgages, thanks to income from investments, part-time work or a working spouse,' he said. The data also show that Canadians are becoming homeowners at a later age, increasing the likelihood that future generations of retirees will continue to hold their mortgages. A Royal LePage report published in 2023 showed that 24 per cent of first-time homebuyers were under the age of 30, while 33 per cent were between 30 and 34, and 43 per cent were 35 and up. By comparison, the same survey in 2021 shows 33 per cent of respondents were aged 35 or over, 'which clearly shows that first-time home buyers are buying later in life,' notes Royal LePage. Statistics Canada data also show that the average retirement age in the country has gradually increased It was 65.3 in 2024, compared to 64.3 in 2020. 'Compared to their grandparents, today's retirees are working longer, staying active and, in many ways, continuing the life they led during their working years, but without the work,' said Soper. 'Their attitude to home ownership has changed over time. As people buy their first home later and work longer, it is increasingly common for Canadians to hold onto a mortgage until retirement, often by choice rather than necessity.' Stay or go? According to responses to a recent Royal LePage survey, Canadians are also sharply divided on whether they want to move to smaller houses in retirement or stay put. In Quebec and Ontario, the majority of respondents indicated that they preferred to remain in their current homes upon retirement. Conversely, in Manitoba and Saskatchewan, the majority of respondents said that they want to move to a smaller space when they retire. In Alberta, respondents were equally divided between the two options. 'Reducing the size of your home in retirement is far from a certainty,' said Soper. 'For many homeowners, the decision to stay where they are or move to a smaller property is influenced by a combination of economic realities, lifestyle needs and personal attachments.' Some retirees say they see a smaller home as a practical and liberating choice with less upkeep, more cash to travel or support their children's home ownership journeys; others say they see no reason, either financial or practical, to part with their home. The online survey of 1,626 Canadians aged 18 and up was conducted between May 2 and May 4, 2025, using Leger's online panel. The online panel has approximately 400,000 members nationwide and a 90 per cent retention rate. A probability sample of the same size would give a margin of error of +/- 2.4 per cent, 19 times out of 20.
Toronto Sun
4 days ago
- Business
- Toronto Sun
Almost one-third of Canadian retirees will be paying a mortgage: Report
Paying a mortgage will be a cost that three out of every 10 retirees will have to manage in 2025 or 2026, according to a Royal LePage report. Photo by iStock / GETTY IMAGES Paying a mortgage will be a cost that three out of every 10 retirees must manage in 2025 or 2026, according to a Royal LePage report. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The real estate company said Tuesday that 29% of those planning to retire this year or in 2026 will still be paying a mortgage when they stop work. '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,' said Royal LePage CEO and President Phil Soper. He insisted that while discharging a mortgage was once 'the economic finish line,' many seniors have now figured out how to keep up payments while covering their other bills. 'While previous generations may have viewed mortgage-free retirement as the only option, today's retirees tend to be more open-minded,' Soper added. '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.' The report also says 46% of Canadians approaching retirement say they plan to downsize their home and 59% of Royal LePage real estate agents in Ontario say condominiums are the most popular property for retirees looking to live in smaller places. Royal LePage experts in Ontario say that single-level layouts (38%), community amenities and services (28%), and proximity to family and friends (24%) are most important to downsizers. Recommended video Columnists Sunshine Girls Sunshine Girls Relationships Columnists
Yahoo
4 days ago
- Business
- Yahoo
Posthaste: Burning your mortgage is going the way of rotary phones and station wagons
The days of burning your mortgage as a rite of passage into your golden years appear to be slipping into the past along with rotary phones and station wagons. A new survey by real estate company Royal LePage suggests that millennials and gen Z are not the only generations struggling with housing affordability in Canada — seniors are carrying the burden well into retirement. Almost a third of Canadians who are planning to retire in the next two years will continue to make mortgage payments on their primary residence into retirement, the survey said. That's twice as many seniors carrying mortgage debt as a decade ago, and in 1999 the share was just eight per cent. Home prices in Canada soared to $827,100 in 2023 from $120,200 in 1990, according to the Canadian Real Estate Association, and these gains have been a 'double-edged sword' for older Canadians, Royal LePage chief executive Phil Soper said. '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,' he said. It's a trend that will likely continue as first-time homebuyers increasingly enter the housing market later in life. A Royal LePage study in 2023 said 43 per cent of first-time homebuyers were aged 35 and older, up from 33 per cent just two years earlier. In the pricey Ontario real estate market, the median age of a first-time homebuyer hit 40 in 2024, up from 36 a decade earlier, which Teranet said is 'a testament to the likely effects of the affordability challenges in the Ontario housing market.' Yet Royal LePage also said that a surprising number of older Canadians are not willing to downsize in retirement — nearly half, 47 per cent. Seniors in Manitoba and Saskatchewan, according to Royal LePage brokers, are more inclined to downsize, while more retirees in Quebec and Ontario opt to stay in their own homes. '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,' Soper said. 'In the era of rotary phones and station wagons, burning your mortgage was the economic finish line. Today's retiree reality is much more nuanced.' to get Posthaste delivered straight to your manufacturing isn't the American dream. President Donald Trump has made it clear he wants to bring factory jobs back to the United States, but this chart from TD Economics suggests the American people might be a bit more ambivalent. Most agree that there should be more people working in domestic manufacturing, but far fewer think it should be them. Trump might have a harder time than he thought convincing Americans that they need to pay higher prices to win back factory jobs. Today's Data: United States durable goods orders, Conference Board consumer confidence, S&P CoreLogic Case-Shiller home price index Earnings: Bank of Nova Scotia, Autozone Inc. How Trump's 'big beautiful bill' could become a big headache for corporate Canada and investors Many investors remain unaware of the scale of the unfolding bond crisis What you need to know about Canadian Tire, the retail giant that bought Hudson's Bay brands Canadian household wealth surged to a new collective high of $17.49 trillion at the end of 2024, and on average Canadians saw their net worth climb 5.77 per cent to reach $1,026,205, fuelled by strong financial asset gains. The Financial Post's Serah Louis breaks down the state of household wealth in Canada — and looks at the uncertainty that lies ahead. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ 'The fear is real,' says TD, predicting 100,000 jobs will be lost in looming recession Canada home prices are heading into correction territory
