Nearly one in three Canadians planning to retire this year or in 2026 will still be paying off a mortgage, according to a new Royal LePage report. The survey found 29% of upcoming retirees expect to carry mortgage debt into retirement — a dramatic rise from 14% in 2016 and just 8% in 1999, based on Statistics Canada data.

Several factors are driving the trend:

• Delayed homeownership, with 43% of first-time buyers in 2023 aged 35 or older (up from 33% in 2021).

• Rising retirement age, now 65.3 on average, compared to 61.6 in 2000.

• Longer life expectancy and more active lifestyles in retirement.

Royal LePage CEO Phil Soper notes this generation is redefining retirement, staying in the workforce longer and treating mortgage-carrying retirement as a lifestyle choice rather than a financial failure.

When surveyed, real estate agents reported a near-even split between retirees planning to stay in their homes versus those looking to downsize. Regional differences play a role, especially in markets like Toronto and Vancouver, where large home equity gains can motivate downsizing — though high condo prices and fees may deter some.

In smaller cities, the transition to downsized living is often smoother due to lower costs and more spacious condo options, the report notes.