Retiring mortgage-free used to be the goal, but today’s reality is different. Here are some reasons why:
- Higher home values have led many to refinance or upsize later in life.
- Historically low interest rates made it attractive to carry mortgage debt longer.
- Parents helping children buy homes often accessed their own equity to do so.
- Early retirements (planned or unexpected) leave some still paying down their mortgage.
Life happens—and sometimes, carrying a mortgage into retirement just makes sense. The key is to have a strategy.
What Are Your Mortgage Options in Retirement?
Here are four ways Canadian retirees can manage their mortgage wisely in 2025:
- Refinance to Lower Monthly Payments
If you’re entering retirement on a fixed income, refinancing can help reduce your mortgage payments by:
- Extending your amortization
- Securing a better interest rate
This frees up monthly cash flow so you can enjoy retirement stress-free.
- Use Home Equity to Support Your Lifestyle
Want to stay in your current home and tap into the equity you’ve built?
- A Reverse Mortgage gives you tax-free cash with no monthly payments.
- A HELOC (Home Equity Line of Credit) gives flexible access to funds for travel, healthcare, or renovations.
- Downsize to Reduce Expenses
Selling your current home and moving to a more affordable property can:
- Eliminate your mortgage entirely
- Free up equity to bolster retirement savings
This is one of the most common (and effective) strategies.
- Consolidate High-Interest Debt
Still carrying credit cards or personal loans? We can help you roll that debt into your mortgage, often at a much lower rate—saving you money each month.
Should You Pay Off Your Mortgage Before Retiring?
It depends on your financial situation. Here’s a quick breakdown:
Pros of paying off your mortgage:
- No monthly payment = peace of mind
- Fewer long-term financial obligations
- Full equity in your home
Pros of keeping your mortgage:
- Preserves liquidity and savings
- You may be earning more on investments than your mortgage interest costs
- Flexibility to manage cash flow
We’ll help you explore the best path based on your income, goals, and lifestyle.
Let’s Talk About Your Retirement Mortgage Plan
Whether you’re 5 years from retirement or already enjoying your morning coffee without an alarm clock, Canadian Mortgage Professionals Inc. is here to help.
Contact us today to explore your options:
Call us: 403-509-2434
Text us: 403-819-0500
Email: [email protected]
https://canadianmortgagepro.com/contact-us/
We check our inbox all day long—and we’d love to help you build a retirement plan that includes peace of mind and the right mortgage strategy.
Canadian Mortgage Professionals Inc.
Your mortgage, your future—made simple.
