Hey there. Canadians nearing retirement are carrying a lot of mortgage debt. In fact, mortgage balances among those aged 55 to 64 rose 6 per cent year over year in 2025, according to Statistics Canada. But is that necessarily a bad thing? Let’s get into it.

When I was younger, I’d watch popular YouTube creators post videos titled, “I paid off my parents’ mortgage!” On top of that being the first time I learned what a mortgage was, it ingrained the idea that paying off a mortgage was something to strive for, and something people should strive to do before old age.

While that’s still true, being able to pay off a mortgage before retirement is becoming less common. And for those who do pay off their mortgage, they are sometimes saddled with other costs that are equally as daunting.

One reader, Leslie Hansen, a 67-year-old from Ancaster, Ont., e-mailed me about how she and her husband decided to downsize in retirement to pay off their mortgage, only to find themselves facing condo fees that aren’t all that different from their former mortgage payments.

Here’s an edited and condensed version of our e-mail Q&A:

When did you and your husband retire?

I’m a self-employed bookkeeper and small business financial manager. I gradually retired by reducing clients for two years and now have one small client left. In March, 2024, my husband was let go from his job at age 62. After a few months of forced retirement for him and semi-retirement for me, we made a rather sudden decision to go full retirement and downsize our home. We had planned to work until we were 67, but it didn’t seem to be in the cards, so we just pivoted suddenly to an earlier retirement.

Tell me about your experience downsizing.

We purchased a single detached small home in a senior’s community. It’s a condominium but we have our own front porch, back deck, and a small green space. We have amenities and social events and absolutely love it.

We were able to pay off the mortgage and HELOC of approximately $250,000 and purchase and fully renovate the new home, and still had some left to pad the portfolio.

What are the payments like at the condo?

Condo fees were $580 at first but have risen to $665 in two years. The community is 30 years old and now all the expensive projects need to be done, and construction and renovations costs have doubled since pre-COVID, and unlike other things, prices have not come down. So, a special assessment is now required along with increased fees.

Property taxes are still a factor, so altogether, monthly costs are about $1,200 for taxes and condo - which isn’t far off our old mortgage.

But the biggest benefit for us is the social life. We’re much happier and active now than we would be in our old neighbourhood.

What advice do you have for others?

Think ahead of the disruption and difficulty of moving in your 70s or 80s. It’s easier to do it in your 60s and settle in and make social connections to last into your 80s.

Also, know and understand condominium living. You can’t do everything you want. There are many rules. And it’s not the place for multiple vehicles, trucks, or large dogs. It’s a lifestyle change but a great one for us.

Oh, and a smaller space in a senior’s community means the adult kids can’t move back in with you!

I want to hear from you. Are you in or near retirement and still have a mortgage? Or did you fight to have your mortgage paid off before retiring? Share your experience. Drop me a line at mraman@globeandmail.com

Share of Canadians who say home equity is no longer the best way to fund retirement, according to a new survey from the Healthcare of Ontario Pension Plan (HOOPP).

Why it matters: For decades, Canadians viewed their home as a key part of their retirement plan. But rising housing costs, higher interest rates and larger mortgage balances later in life are making many rethink whether home equity alone can provide financial security in retirement.

What’s the most tax-efficient way for Sonali, 70, to fund rising health-care costs for her husband?

The numbers: Sonali and Felipe have no debt and about $4.1-million in assets, including $1.05-million in corporate investments, $2.3-million across registered and non-registered accounts, and a $600,000 condo.

The situation: Felipe, 85, is in declining health and may soon require private nursing-home care costing $10,000 a month or more. Sonali wants to draw down the couple’s assets in the most tax-efficient way possible, reduce Old Age Security clawbacks and potentially relocate to the United States to be closer to family.

Key takeaways, from a financial planner: Sonali could reduce taxes by making greater use of her corporation’s capital dividend account, which allows certain withdrawals to be paid tax-free. The planner also recommends restructuring some investments to improve tax efficiency and preparing carefully for any future move to the U.S.