‘I might never pay it off’: Some Canadians retire still in debt

A growing number of Canadians are entering retirement still carrying mortgage debt. (Credit: Pexels)

A growing number of Canadians are entering retirement with mortgage debt — and for many, it’s not by choice.

A new Royal LePage survey, conducted by Leger, reveals that nearly three in 10 Canadians (29 per cent) planning to retire within the next two years say they will still be making mortgage payments when they leave the workforce. Nearly half (47 per cent) say they don’t plan to downsize their homes.

Statistics Canada data show the average retirement age in Canada is also rising. In 2024, it was 65.3, up from 64.3 in 2020.

While some retirees are choosing to stay in their homes for comfort or practicality, many are finding themselves unable to pay off their mortgages — a shift that raises concerns about long-term financial security, health-care access and housing affordability.

CTVNews.ca asked readers to share their experiences with retiring while still carrying a mortgage. The responses below have been edited for length and clarity.

‘The math was sound, but life didn’t cooperate’

Leon Budziszewski of Ottawa planned to retire at 65 with his mortgage paid off, savings in place, and enough money for a new car and a modest trip.

But a surprise case of COVID-19, which developed into long COVID, forced him to stop working earlier than expected.

“The math I used was sound, but life did not cooperate,” he wrote in an email to CTVNews.ca.

“You never know what will happen to you in life … and situations you thought were nearly impossible, or at the very least not very likely, can happen.”

For some, keeping a mortgage makes sense

Sandi Hunter, who retired with her husband in Ottawa in 2021, says their condo mortgage still costs less per square foot than renting.

“It makes sense to us,” she wrote in an email to CTVNews.ca.

“We’re even up for renewal in August and plan on continuing with our mortgage for another five years.”

Carolyn Lynch said renewing her mortgage after retirement was no easy task. Despite having pension income and RRSP savings, the new lender was only interested in her part-time job.

“If I didn’t have that job, I’m not sure I would have got a new mortgage,” she wrote in an email to CTVNews.ca.

Market realities leave little choice

Toronto realtor John Pasalis, president of Realosophy Realty, says his firm has been watching this trend for at least five to seven years.

The surge in housing costs, especially in urban centres like Toronto and Vancouver, has made it harder for younger generations to buy homes — leading some parents to take on more debt to help their kids.

“It’s not entirely surprising,” Pasalis said in a video interview with CTVNews.ca.

“Many parents are faced with a difficult choice: borrow to help their kids, or see them move far away.”

The rising cost of downsizing is another factor.

Pasalis says condos in Toronto are relatively expensive when compared to what retirees give up in terms of size and amenities.

“Even though they are downsizing their space, many don’t end up spending less,” he said.

“But they’re choosing lifestyle: no stairs, no maintenance, freedom to travel.”

‘I’ll have to pinch pennies’

For others, the burden is heavier.

Cheryl Maxwell, who moved from Winnipeg to Carman, Man., to prepare for retirement, still faces the reality of long commutes and an uncertain future.

“It is unlikely my mortgage will be paid off during my lifetime,” she wrote in an email to CTVNews.ca.

“I’ll have to pinch pennies for sure — I may very well need a part-time job just to make ends meet.”

Some retirees say they’re shouldering the load for family members.

Lynne Foster, 72, of Winnipeg, still works full time and supports six people, including her son and grandchildren, who live rent-free in a city house.

“They refuse to pay rent,” she wrote in an email to CTVNews.ca.

“Here I am at 72, supporting everyone. I’m also collecting pensions to keep up with all the payments — and no one seems to care.”

‘Hope this will be the last house I own’

Dean White, a firefighter in Niagara Falls, says he’s preparing to retire in five years and will still have a mortgage at that time — a decision partly shaped by health risks from his job.

“Since my life expectancy is shortened by toxic exposure during fire calls, paying off our mortgage has not been a priority,” he wrote in an email to CTVNews.ca.

“I’ll be using CPP and retirement buyout funds to pay it down faster.”

Christine Bell of Kemptville, Ont., has owned homes since the age of 25. A single woman throughout her life, she says she’s been fortunate to hold jobs that allowed her to purchase several properties over the years with the help of the bank.

“I feel very fortunate, but I’ve just retired and still carry a mortgage on my current house,” she wrote in an email to CTVNews.ca.

Now retired and living in a bungalow for health reasons, Bell hopes “this will be the last house” she will own. She recently renewed her mortgage knowing she likely won’t pay it off entirely.

“I took the longest amortization period at the lowest rate, understanding that I’ll probably carry this mortgage until I either pass away or move into long-term care.”