Latest news with #Soper
Toronto Sun
27-05-2025
- 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
27-05-2025
- Business
- Yahoo
More Canadians plan to carry mortgage debt into retirement: Royal LePage
More people are planning to enter retirement while still paying off a mortgage, a new report from Royal LePage says, with affordability and an evolution in when and how people retire among the factors. A survey conducted for the real estate company found that 29 per cent of the Canadians planning to retire this year or in 2026 will carry mortgage debt into their retirement. Separate data from Statistics Canada show that in 2016, only 14 per cent of senior families had mortgage debt; in 1999 that proportion was just eight per cent. 'In the era of rotary phones and station wagons, burning your mortgage was the economic finish line,' Phil Soper, president and CEO of Royal LePage said in a statement. 'Today's retiree reality is much more nuanced.' A factor in Canada's housing crisis is the concentration of single-family homes within the Baby Boomer cohort, Soper told Yahoo Finance Canada in an interview. 'We knew that eventually the tide would turn,' he said. 'People would just reach the age where they'd start to exit those family homes.' But, he added, the report shows that Boomers' exodus from property ownership 'has been much delayed compared to previous generations.' Boomers are subject to the same affordability challenges that define the current housing market in Canada, the report says, which have left many with significant mortgages. The report also notes several demographic trends — some related to affordability — that are likely also factors. This generation of retirees is entering retirement sort of kicking and screaming, saying, 'I won't go quietly into the night.'Phil Soper, president and CEO, Royal LePage The age of first-time home buyers has been creeping up, the report says, 'increasing the odds of future generations of retirees carrying a mortgage further into retirement.' In a 2023 report from Royal LePage looking at first-time homebuyers, it found 43 per cent were 35 years old or older — up from 33 per cent in 2021. The average retirement age has also risen fairly steadily: the age was 61.6 in 2000, according to Statistics Canada data, and 65.3 in 2024. Canadians today are also living 'about 50 per cent more years after turning 65' compared to their grandparents, the report says. 'People are working longer,' Soper said. 'People are staying active longer. The whole Zoomer thing didn't exist for Boomers' parents. They were just expected to retire and spend time with grandkids. … There's obviously exceptions but generally this generation of retirees is entering retirement sort of kicking and screaming, saying, 'I won't go quietly into the night.' "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.' In a survey of brokers and sales agents across Canada about the attitudes of people in the retirement window, Royal LePage found that 44 per cent saw an even split between people who planned to stay in their home and people who planned to downsize. 28 per cent said a majority were choosing to downsize and 21 per cent said a majority were choosing to stay put. Those preferences vary in different regions, and Soper said one factor was likely the particularly steep rise in home prices in greater Toronto and greater Vancouver. 'The amount of capital gains you could surface in our two largest cities really dwarfs what you see in other parts of the country,' he said. 'So I think we will see different trends in the GTA and the lower mainland of B.C. than for example what we might see in Halifax or Calgary.' Smaller Canadian cities may not have as many huge houses and may also have condo options that aren't as compact as many of those available in Toronto or Vancouver, Soper said, making a downsize move less 'dramatic' for someone retiring. Furthermore, someone in Montreal or Toronto contemplating a move into a larger condo may be deterred by the costs, Soper said. 'The price that is demanded for large condos in the city can be so high that once you include condominium fees, if you do the math over 10 or 20 years you're not saving any money by moving to a larger condo in our bigger cities.' John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android.
Toronto Sun
27-05-2025
- Business
- Toronto Sun
Almost one-third of Canadian retirees will be paying a mortage: 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 Relationships Columnists Columnists Football Columnists
Cision Canada
27-05-2025
- Business
- Cision Canada
The new real estate reality for retirees: Exiting the workforce with mortgage debt Français
Nearly a third of Canadians retiring within the next two years say they won't have their home paid off Highlights: Three in ten Canadians (29%) planning to retire within the next two years say they will carry a mortgage into retirement. Nearly half (47%) of Canadians approaching retirement say they do not plan to downsize their home. 43% of Royal LePage experts say condominiums are the most popular property type among downsizing retirees. TORONTO, May 27, 2025 /CNW/ - A recent Royal LePage survey, conducted by Leger, 1 suggests a new housing reality for older Canadians is taking shape. According to the survey, nearly three in ten Canadians (29%) who are planning to retire in 2025 or 2026 say they will continue to make mortgage payments on their primary residence into retirement. The trend seems to be accelerating, as affordability continues to challenge Canadians of all ages: only half as many senior households had mortgage debt approximately ten years ago. According to Statistics Canada, 14 per cent of households with income earners aged 65 and over had a mortgage in 2016, up significantly from eight per cent in 1999. 2 "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. 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," said Phil Soper, president and CEO, Royal LePage. Nearly half of those planning to retire in 2025 or 2026 (45%) say that their mortgage is currently paid off, while another six per cent say their mortgage will be paid off before retirement. Forty-six per cent of respondents approaching retirement say they will downsize their home within two years of ending full-time employment, while 47 per cent say they will not. "Home price appreciation over the past 25 years has been a double-edged sword for today's retirees," said 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. "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." The average age of retirees in Canada has been gradually increasing. Statistics Canada reports the average retirement age was 65.3 in 2024, up from 64.3 in 2020. 3 At the same time, Canadians are entering the housing market later, increasing the odds of future generations of retirees carrying a mortgage further into retirement. A 2023 Royal LePage report 4 states that 24 per cent of first-time homebuyers were under the age of 30; 33 per cent were aged 30-34; while 43 per cent were aged 35 or older. Compared to the results of the same survey in 2021 – which found that only 33 per cent were aged 35 and up – it is clear that Canadians are buying their first homes later in life. "Compared to their grandparents, today's retirees are enjoying about fifty per cent more years after turning 65. 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." __________________________________ 1 An online survey of 1,626 Canadians ages 18+ was completed between May 2-4, 2025, using Leger's online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.4 per cent, 19 times out of 20. 2 Statistics Canada, Debt and assets among senior Canadian families, Survey of Financial Security, April 3, 2019 3 Statistics Canada, Retirement age by class of worker, annual, Table 14-10-0060-01 Retirement age by class of worker, annual 4 Down payment dilemma: Canadian first-time homebuyers fear of falling short is escalating, June 2023 Retirees split on downsizing versus staying put The decision to downsize in retirement is a highly personal one based on lifestyle preferences, and Canadians are largely divided on the matter, according to a recent Royal LePage survey of real estate professionals across the country. 5 Nationally, 44 per cent of respondents say that, 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. In Manitoba and Saskatchewan, the highest percentage of respondents in Canada (46%) say the majority of retirees are choosing to downsize. Meanwhile, 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. "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. "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. 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." Of those Royal LePage experts who say that a majority of people nearing or entering retirement are downsizing, 43 per cent say that standard condominiums are the most popular property type among this cohort, followed by adult living communities that cater to those aged 55 and up (25%), and detached properties (16%). When it comes to the features that are most important to downsizers, 38 per cent of respondents say a single-level layout is a priority; followed by proximity to hospitals, community amenities and services (27%); proximity to family and friends (25%); paid maintenance services (19%); and, covered parking (17%). Respondents were able to select more than one answer. ______________________________ 5 A national online survey of 471 Royal LePage brokers and sales representatives serving buyers and sellers in Canada was conducted between May 7, 2025, and May 14, 2025. The Retired Homeowner - Data Chart: About the Leger Survey An online survey of 1,626 Canadians ages 18+ was completed between May 2-4, 2025, using Leger's online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.4 per cent, 19 times out of 20. About the Royal LePage Advisor Survey A national online survey of 471 Royal LePage brokers and sales representatives serving buyers and sellers in Canada was conducted between May 7, 2025, and May 14, 2025. About Royal LePage Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage ® Shelter Foundation ™, which has been dedicated to supporting women's shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services ® Inc. company, a TSX-listed corporation trading under the symbolTSX: BRE. For more information, please visit Royal LePage ® is a registered trademark of Royal Bank of Canada and is used under licence by Bridgemarq Real Estate Services ® Inc.
Global News
27-05-2025
- Business
- Global News
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.
