Retiring with a Mortgage? Here’s How to Do It Smartly

More Canadians are entering retirement with a mortgage—and it’s not necessarily a bad thing. Rising home prices, financial support for adult children, and strategic borrowing have made mortgage debt in retirement more common than ever.

According to Royal LePage, 30% of Canadians retiring soon expect to carry a mortgage, up from just 14% in 2016. While this shift may seem risky, it can work—if you have a plan.

Smart strategies include:

• Refinancing before retirement to secure better rates or longer amortizations.

• Downsizing to eliminate debt and boost retirement cash flow.

• Using a reverse mortgage to access equity without monthly payments.

• Working with a mortgage professional to ensure your mortgage fits your lifestyle and long-term goals.

Retiring with a mortgage doesn’t have to derail your plans. The key is knowing your numbers, understanding your options, and creating a strategy that aligns with your income and future goals. With the right approach, you can enjoy retirement—mortgage and all.

Tonia, The Mortgage Missus Inc.

About the author,

Tonia Mercer is an independent mortgage broker. She has been in the industry for 17 years, in 2021 she launched her own brokerage The Mortgage Missus Inc. 

Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers. Effectively creating a concierge service for all things financial and real estate.

Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission