A significant number of Canadian retirees are settling their mortgage debts, a common occurrence among the aging population.
Canadians Nearing Retirement Consider Downsizing Homes due to Financial, Lifestyle, and Health Factors
According to a Léger poll conducted for Royal LePage, approximately 29% of Canadians planning to retire in 2025 or 2026 anticipate continuing to repay their mortgage on their primary residence during retirement. Carolyn Forget, a real estate broker at Royal LePage Urbain in Montreal, attributes this trend to the rising costs of living and some homeowners' desire to support children in purchasing homes.
In addition to mortgage debt, many Canadians approaching retirement are contemplating downsizing their living space. The poll indicates that 34% of respondents planning to retire within the next two years intend to reduce their square footage. This early downsizing might be due to a variety of economic, personal, and temporal factors, as noted by Carolyn Forget.
Downsizing offers several advantages for retirees, including financial flexibility. By selling a larger home and moving to a smaller property, homeowners can free up home equity, reduce maintenance costs, and lower property taxes, which can provide additional funds for investment or lifestyle improvement during retirement.
Moreover, downsizing can align with the need for a simpler, more manageable home as physical mobility may become more challenging with age. Moving to a smaller, more accessible dwelling can improve health and safety by reducing the strenuousness of daily living activities and creating a safer environment.
Additionally, lifestyle improvements such as relocating closer to family, friends, or essential amenities can contribute to better social connections and quality of life. For retirees who enjoy traveling, smaller homes offer the advantage of a "lock and leave" lifestyle, reducing the burden of maintaining a large property while away.
This Léger poll was conducted online from May 2 to 4, 2025, among 1,626 Canadians aged 18 and over. The findings suggest that Canadians nearing retirement weigh financial realities like mortgage debt and ongoing costs alongside personal desires for convenience, health, and social connections when deciding to downsize their homes.
Canadians nearing retirement are not only considering downsizing their living space, but they are also contemplating continuing to repay their mortgage during retirement. This decision could be due to the rising costs of living and the desire to support children in purchasing homes. By downsizing, retirees can free up home equity, reduce maintenance costs, and lower property taxes, providing additional funds for investment or personal finance. Moreover, a smaller home can offer a simpler, more manageable living environment and align with the need for improved health and safety as physical mobility becomes more challenging with age. Additionally, downsizing can provide lifestyle benefits such as better social connections and quality of life, including the option for a lock and leave lifestyle that reduces the burden of maintaining a large property while traveling.
