At one time, heading into retirement mortgage-free was considered the gold standard. But for today’s retirees, that goal is increasingly out of reach—and in many cases, no longer necessary.
According to a 2024 Royal LePage survey, 30% of Canadians planning to retire in the next two years expect to carry mortgage debt into retirement, more than double the 14% who said the same in 2016. (Source)
That shift reflects deeper changes in Canada’s economic landscape, particularly around rising home values, intergenerational support, and evolving retirement expectations.
What’s Driving the Trend?
At Brant Financial Group | Assante Capital Management Ltd., we’re seeing this firsthand with clients who are transitioning into retirement with more debt than previous generations—but also with more assets and opportunities. The key drivers include:
Later-Life Home Purchases and Refinancing
Many pre-retirees entered the housing market later in life or took advantage of historically low interest rates to refinance. While this can be a smart move, it often leaves debt on the books well into retirement.
Financial Support for Adult Children
Almost half (48%) of Canadians aged 55+ have helped their children financially—often for home purchases—using tools like HELOCs or refinancing, resulting in new mortgage obligations just as they near retirement.
Rising Home Prices and Delayed Retirement
Skyrocketing real estate prices mean even long-term homeowners may still be carrying a balance. Some Canadians are now delaying retirement to manage this debt load, while others are choosing to retire with it and adjust their plans accordingly.
Increased Use of Home Equity
From renovations to income supplementation or lifestyle needs, many retirees are using equity as a financial tool. But when done without a coordinated strategy, it can increase long-term financial risk.
Is Retiring with a Mortgage a Problem?
Not necessarily. The real question is whether your retirement plan can support it.
When managed within a broader investment and income strategy, mortgage debt can actually help preserve other assets, such as RRSPs or non-registered investments. But without a plan, debt can erode financial flexibility, create stress, and limit future options.
Ask yourself:
Does your retirement income comfortably cover your mortgage?
Are you drawing from investments too early or inefficiently to make payments?
Is the debt limiting your ability to invest, travel, or support other goals?
Have you reviewed how interest rate changes might impact your cash flow?
Where an Advisor Can Help
This is where advice matters. At Brant Financial Group | Assante Capital Management Ltd., we help clients view mortgage debt not in isolation—but as part of their broader retirement and investment plan. Together, we can:
1. Build a Customized Withdrawal Strategy
We’ll coordinate mortgage payments with your investment income, ensuring that withdrawals are tax-efficient and sustainable over time.
2. Explore Downsizing or Investment Realignment
Selling a large home or tapping into investment assets strategically may allow you to eliminate the mortgage and unlock new income streams.
3. Consider Tools Like Reverse Mortgages—With Caution
For some, a reverse mortgage provides a way to stay in their home without monthly payments. It’s not a fit for everyone, but it can be part of a larger plan when used responsibly.
4. Stress-Test Your Plan
We run scenarios to test how your cash flow would hold up under different interest rates, market conditions, or spending levels—so there are no surprises.
The New Retirement Norm
Carrying a mortgage into retirement no longer signals poor planning—it reflects a new financial reality. The key is to align your debt strategy with your investment portfolio, risk tolerance, and retirement vision.
Whether you're approaching retirement or already there, we can help ensure your mortgage fits comfortably within your long-term plan—not as a burden, but as a manageable component of your financial strategy.
Let’s talk. Book a meeting with a Brant Financial Group advisor today and build a retirement plan that works—mortgage or not.
