Retirement and real estate in Quebec: Stay put or downsize?

Royal LePage survey offers new insights into the home ownership trends of retirees

Nowadays, owning a home is a challenge – and paying off your mortgage in full is an even greater one – especially when you consider the continuing rise in property prices, exacerbated by the increased demand for real estate resulting from the COVID-19 pandemic and the significant increase in Canada’s population in recent years. But, what happens to one’s ‘homeowner status’ when the time comes to consider retirement, given that Canadians are leaving the workforce later and later, as life expectancy increases?

Financial freedom redefined

According to a recent Royal LePage survey, conducted by Leger,¹ nearly three in ten Canadians (29%) who plan to retire in 2025 or 2026 say they will continue paying off the mortgage on their primary residence during retirement. Nearly half (45%) say they have already paid it off, and 6% say they will have paid off their mortgage before they retire.

“For a long time, people thought a successful retirement meant being debt-free, especially when it came to mortgages, but with the rising cost of living, this has become more difficult for many people to achieve,” points out Carolyn Forget, real estate broker with Royal LePage Urbain in Montreal. “I’ve also noticed that some homeowners are voluntarily choosing to extend their mortgage to help their children become homeowners. This financial support, motivated by a strong sense of intergenerational responsibility, can delay their own financial freedom. Apart from making a strictly financial contribution to the down payment on a property, some opt to buy a multi-unit income property together and live in it as a family.”

Of Canadian adults who plan to retire this year or next, 46% say they will downsize their home within two years of leaving full-time employment, while 47% say they will not.

It’s a very personal decision and those involved are largely divided on the issue, according to a recent Royal LePage survey of real estate professionals across the country.² According to the survey, retirees in the province of Quebec are the second most likely in Canada to downsize (35%), after the Prairies (46%). Conversely, 24% of experts say that most retirees are choosing to stay in their current homes, a proportion that ties Quebec with Ontario. It is in these two provinces that this trend is most marked in the country. Finally, 36% of respondents believe that, in their local market, there is an approximately even split between those looking to downsize and those choosing to stay in their current home.

A striking shift in average retirement age in Quebec is shaping seniors’ lifestyles

As a sign that retirement is no longer a fixed point in the calendar, but rather a gradual process, between 2000 and 2023 Quebec saw a marked increase in the proportion of people aged 55 and over who remain active in the labour market. This age group now outnumbers those aged 15 to 24 in the workforce. The biggest growth has been in the 65+ age group, whose numbers have risen from 29,000 to 233,000 in just over two decades.³ The average retirement age in the province has risen from 60.5 in 2000 to 64.7 in 2023.⁴

“The choice of lifestyle for retirement depends on multiple economic, personal and time-related factors,” notes Forget. “What I’ve noticed is that a significant number of people at this stage of their lives are choosing to downsize their main residence sooner rather than later, while they still have the energy and physical fitness to do so. For these people, despite some of the grief associated with leaving the family home, this step allows them to be freer and able to travel, as they are no longer constrained by the upkeep of a large single-family home. Reducing the size of your home is not a loss, it’s a gain of freedom: less maintenance, less stress, and more time for yourself.”

Among Royal LePage experts indicating an increased appetite among retirees to downsize, a condominium is the most popular choice (58%), followed by adult living communities for those aged 55 and over (21%), a detached property (16%), and an attached home (5%). The brokers surveyed indicated that the three most important characteristics for those choosing to move to a smaller home were a single-level layout (30%), proximity to family and friends (28%), proximity to hospitals, community amenities and services (25%), accessibility features (17%), covered parking (15%), paid maintenance services (9%), and access to social programs/clubs (4%). Respondents could select more than one answer.

Financial instability and forced decisions

Emotional considerations aside, some property decisions are dictated by an increasingly unstable financial reality.

“For some people, retirement means freedom and plans for the future. For others, it comes with a certain amount of financial anxiety, especially when the home represents the bulk of their savings. Getting a good sale price can mean the difference between a comfortable retirement and more difficult years ahead,” adds Forget.

For those whose mortgage is fully paid off, there are other interesting avenues to explore

“Many homeowners are looking for ways to maximize the value of their fully-paid home,” she added. “This is where products like reverse mortgages really shine. When a home is mortgage-free, it becomes a tax-free asset that the owner can use as financial leverage. Rather than selling, you can borrow against that equity to generate income, while keeping your property. Of course, I would recommend that anyone considering this assess all their options with their financial advisor and mortgage broker.”

Strategic support not to be neglected

In the context of retirement, the decisions surrounding the maintenance or sale of a property are never trivial. Each situation is unique, and requires tailored planning.

“Whether they choose to stay in their home or move, homeowners approaching retirement have everything to gain from entering this transition phase with an experienced broker. We understand the financial and emotional challenges of this stage of life. Everyday, we work with our clients to help them make informed, lasting decisions,” concludes Forget.

¹An online survey of 1,626 Canadians ages 18+ was completed between May 2-4, 2025, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.4 per cent, 19 times out of 20.

²A provincial online survey of 55 Royal LePage real estate brokers serving buyers and sellers in Quebec was conducted between May 7, 2025, and May 14, 2025.

³Statistique Québec, Données sur la population active, dernière mise à jour en octobre 2024

⁴Statistique Québec, Âge à la prise de la retraite, dernière mise à jour en septembre 2024