Homebuyers lean on gifts and loans while more retirees plan to sell their homes to fund retirement
Most recent Canadian homebuyers could not have purchased property without outside financial help, with 70 percent relying on family gifts, loans or other support, according to a Mortgage Professionals Canada survey released Thursday.
“Down payment assistance is no longer a backup plan — it’s a requirement for many Canadians hoping to buy,” said Lauren van den Berg, president and CEO of Mortgage Professionals Canada, as reported by The Canadian Press.
Affordability challenges are pushing housing into the centre of both wealth-building and retirement strategies.
As per a Healthcare of Ontario Pension Plan (HOOPP) survey reported by Wealth Professional, 62 percent of Canadians now view homeownership as a key element of retirement — either as an investment or a source of stability.
In 2025, 44 percent of homeowners plan to fund retirement through selling their home, rising from 42 percent in 2024 and 38 percent in 2023.
HOOPP’s vice-president of strategy, global intelligence and advocacy, Jennifer Rook, said rising prices are forcing Canadians to prioritise homeownership over retirement savings.
“As the house becomes more expensive, you are kind of forced to choose a little bit more,” said Rook.
The trend is especially pronounced among younger Canadians, with 55 percent of those aged 18 to 34 expecting to rely on home equity for retirement.
That compares to 50 percent among those aged 35 to 54 and 41 percent among those aged 55 to 64, according to HOOPP’s survey conducted by Abacus Data.
For the first time since the survey began seven years ago, one-third of Canadians said they would consider remortgaging their homes to support retirement. But that strategy carries risk.
HOOPP found 65 percent of working homeowners are concerned about carrying a mortgage into retirement — up from 51 percent in 2024 and 45 percent in 2023.
In the planning process, rising concerns about repayment burdens have also become visible.
According to Mortgage Professionals Canada, one in five homeowners with a mortgage renewal approaching reported anxiety over future payment increases.
That comes as 1.2 million mortgages are expected to renew this year, according to a February report by Royal LePage. About 85 percent of those were taken out when the Bank of Canada’s policy rate hovered at or below 1 percent during the pandemic.
Many buyers now prefer stability: 68 percent said they favoured fixed-rate mortgages, as per Mortgage Professionals Canada.
Still, the report noted that variable-rate holders were nearly twice as likely to make extra payments than those with fixed rates.
Beyond financing strategies, over 70 percent of homeowners reported that they had either recently renovated or plan to renovate their homes. Some are turning to rental income to offset costs.
Property’s central role in long-term planning has prompted some advisors to change their modelling.
As reported by Wealth Professional, Evan Inglis, executive financial consultant at IG Wealth Management in Calgary, said he keeps home price appreciation below the inflation rate in client plans, updating home values annually rather than projecting growth.
“I don’t want the retirement prognosis for a client... to hinge upon what the City of Calgary decides their home is valued at,” said Inglis.
He added that while some clients are determined to age in place, others view the home as a source of flexibility. Annual reassessments help balance the emotional and financial aspects of homeownership.
Inglis said he also uses these updates to stress diversification and avoid overreliance on real estate in uncertain markets.
For younger buyers questioning the value of homeownership, Inglis offers a grounded comparison with renting and ensures the decision reflects broader financial goals.
When clients express concern about possible price drops, he illustrates how their plan holds up under various scenarios. “It’s not realistic to set a four percent growth rate,” he said. “It’s realistic that we revisit this every year.”
Mortgage Professionals Canada also flagged a growing concern about mortgage fraud, with 34 percent of respondents highly concerned — up from 29 percent the previous year.
“Mortgage fraud artificially inflates home prices,” said van den Berg, calling for income verification processes that are “safe, fast, and fair.”
Despite a series of Bank of Canada interest rate cuts that brought the key rate down to 2.75 percent, 62 percent of non-homeowners said they still doubt they will ever afford a home, according to HOOPP.
Savings pressures compound the issue. Two-thirds of unretired Canadians expect to work later into life. Among retirees, 15 percent reported having no savings, and more than one-third had less than $5,000.
