Written by 3:05 AM Opinion • 10 Comments Views: 1

Mortgage-Freedom Is Key For Retirees

Front row seat for the sunset 75% of households own a home by retirement, and almost 3/4 of those don’t have a mortgage. That’s according to a Statistics Canada study issued on Monday.

StatCan says, “The economic benefit of owning a home is equivalent to the rent that does not have to be paid.”  And that benefit is significant because, as StatCan notes, net incomes decline by about 45% between a household’s peak earning years and the 70-plus retirement-age class.

Not surprisingly, that makes mortgage-free home ownership a vital contributor to most senior citizens’ effective household incomes.

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Last modified: April 26, 2014

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.