A HOOPP study reveals a growing number of Canadians bank on their home to finance life after work
A growing number of Canadians are banking on their homes to fund retirement, despite mounting concerns about the risks involved. A new study from the Healthcare of Ontario Pension Plan (HOOPP) reveals that 62% of Canadians consider owning a home “a key part of their retirement strategy, either as a financial investment or a source of stability in retirement.”
The results point to a growing reliance on property sales to finance life after work, a report from Financial Post highlighted. This year, 44% of homeowners said they plan to fund their retirement through the sale of their home – up from 42% in 2024 and 38% in 2023.
Shifting priorities and financial pressures
HOOPP’s vice-president of strategy, global intelligence and advocacy, Jennifer Rook, said rising home prices are forcing Canadians to make hard financial choices.
“When people are younger, they have to save for two key assets in life, one being a house and one being retirement,” Rook said. “As the house becomes more expensive, you are kind of forced to choose a little bit more. What we are seeing is people are really still striving for the house and putting stock in (it).”
For the first time in the seven-year history of the survey, one-third of respondents said they would consider remortgaging their homes to help fund their retirement.
Uncertainty and risk
While many see homeownership as a safety net, HOOPP’s findings also reveal underlying financial uncertainty. Sixty-five per cent of working homeowners said they are concerned about still having a mortgage at retirement – up sharply from 51% in 2024 and 45% in 2023.
“If you’re relying on that as your retirement asset, that plan is a lot less certain than it was when you embarked on that path many years prior,” Rook said.
Despite current interest rates dropping to 2.75% from a peak of 5%, 62% of non-homeowners remain doubtful they will ever afford to purchase property.
Generational divide and lack of savings
Younger Canadians appear most dependent on home equity. Fifty-five per cent of those aged 18 to 34 said they expect to rely on their homes for retirement, compared to 50% of those aged 35 to 54 and 41% aged 55 to 64.
The survey also uncovered stark savings challenges. Two-thirds of unretired Canadians said they expect to keep working later in life. Meanwhile, 15% of retirees reported having no savings, and over one-third said they have less than $5,000.
HOOPP commissioned Abacus Data to survey 2,000 adults between April 11 and 16. The margin of error is ±2.19%, 19 times out of 20.
