The short answer is: you don't have to, but having a plan makes all the difference. Whether carrying a mortgage into retirement becomes a problem or a non-issue comes down to how prepared you are, not just how much you owe.
The Fear That Brings Most People to Me
When clients get close to retirement and still have a mortgage, the worry is almost always the same: What if I can't afford my payments?
What if I have to cut back on everything I've been looking forward to?
What if I end up working longer than I wanted?
That fear makes sense. But in most cases, it's not the mortgage itself that's the problem. It's not having a plan around it.
When a Mortgage in Retirement Actually Works Out Fine
I've worked with plenty of clients who carried a mortgage into retirement and did just fine. The ones it worked out for usually have a few things in common: they had good, stable jobs, they started planning for retirement early, and many had employers who contributed to their retirement savings.
They worked with a financial advisor, stayed on track, and by the time retirement arrived, their income was enough to cover their mortgage payments without stress.
A mortgage in retirement isn't automatically a red flag. It depends on what's coming in versus what's going out.
Why Retirement Income Is Smaller Than Most People Expect
Before we get into when it works and when it doesn't, it helps to look at the actual numbers, because most people are surprised by them.
In 2026, the maximum CPP payment at age 65 is $1,507.65 per month. But reaching that maximum requires 39 years of maximum contributions. Most Canadians don't hit that. The average CPP payment is closer to $858.34 per month. Add Old Age Security - $751.97 per month for ages 65 to 74, and $827.17 for 75 and older. If that's all you have coming in, you're working with roughly $1,610 a month before tax at the average, or about $2,260 at the maximum.
That's before property taxes, groceries, utilities, insurance, and everything else. A mortgage payment on top of all of that leaves very little room. So when I say "it depends on your income," that's what I mean. The numbers are smaller than most people plan for.
When It Actually Is a Problem
Here's what the harder situations look like. The clients who genuinely struggle are usually ones who have little to no retirement savings, didn't have a savings plan along the way, or were counting on someone else to help cover the gap and that didn't happen.
The other warning sign I look for is a mortgage that's been refinanced many times. If someone has pulled equity out of their home repeatedly and now has a big balance, but their retirement income won't cover it comfortably, that's a real problem. The math just doesn't work.
What I Actually Walk Clients Through
If someone comes to me 5 to 10 years before retirement and asks whether they should be throwing extra money at their mortgage, here's how I think through it with them, always alongside their financial advisor.
We start by looking at what retirement actually costs.
What do they have saved?
What are they expecting to spend?
Will they need to cut back on anything?
That's the financial advisor's side of things.
Then we look at the mortgage.
What's the balance today, and what will it be when they want to retire?
Is there a way to change how their payments are set up to pay it off faster without making life harder right now?
In a lot of cases, there is. Some people are even able to turn a 30-year mortgage into a much shorter plan just by restructuring how their payments and debts are set up.
A Real Example
One client came to me with 10 years left until retirement. Her mortgage was also set to be paid off in 10 years, so on paper she was fine. Mortgage-free and retirement would arrive at the same time.
But when we looked at how her mortgage and other debts were set up, we found a smarter way to structure things. The result? She went from 10 years left on her mortgage to about 5 years. Same income, same life, just organized better.
That opened up a whole new set of options. She could retire earlier than planned. She could take those 5 years of mortgage payments and put them into savings or investments instead. Or she could simply enjoy knowing her home was paid for and that she had more choices ahead of her than she thought.
That's what good mortgage planning can do.
The Real Goal: Options and Freedom
Being mortgage-free before retirement isn't just about the money. It's about having choices. When you don't have a mortgage payment to worry about, you can retire when you want to, not when you have to. You can spend on the things that matter. You can handle an unexpected expense without panic.
If you're also thinking about whether it makes more sense to pay off your mortgage or invest the money, that's a great question to explore alongside this one, the answer is different for everyone.
What Should You Do?
If retirement is 5 to 15 years away and you still have a mortgage, the best thing you can do right now is get a clear picture of where you stand. Talk to your financial advisor about your retirement income. Then book a mortgage check-up so we can look at whether your current mortgage setup is working as hard as it could be for you.
You might be in better shape than you think. Or there might be a simple change that moves your timeline up by years.
Either way, you deserve to know.
Are you on track to be mortgage-free by retirement, or is that a question you've been putting off answering?
Key Takeaways
Carrying a mortgage into retirement isn't automatically a problem. It depends on your income and savings plan.
The average CPP payment in 2026 is $858.34/month. Add OAS of $751.97 and most people have roughly $1,610/month in government income before tax, not a lot of room for a mortgage on top of everything else.
The clients who struggle most are those with little savings, no retirement plan, or a mortgage that's grown from pulling equity out over the years.
Clients who do well typically had stable jobs, started saving early, and stuck to a financial plan.
If being mortgage-free before retirement is your goal, there are often ways to get there faster than you'd expect.
One client cut 5 years off her mortgage timeline without changing her income, just by restructuring how things were set up.