Canadian Seniors More Likely To Have A Mortgage Than Young Adults

Recent data from the Bank of Canada reveals a surprising trend: in 2024, Canadian seniors are more likely to have a mortgage than young adults under 35. Specifically, 14% of mortgage holders are aged 65 and older, while only 12% are under 35.

The majority of mortgage debt is concentrated among those in their prime earning years. Individuals aged 45 to 64 hold nearly half (49%) of all mortgage debt, and those aged 35 to 44 account for just over a quarter (26%). This means that three out of four outstanding mortgages belong to Canadians between 35 and 64 years old.

Interestingly, the data shows that younger Canadians are less likely to own homes compared to previous generations. While nearly half of current mortgages are held by those 45 and older, most (52%) originated when the borrowers were younger than 45. However, only 23% of current mortgages were taken out by individuals under 35, indicating that today's young adults are less than half as likely to own a home at the same age as their predecessors.

This trend is further supported by findings from Statistics Canada's Canadian Housing Statistics Program, which reports that homeownership rates for individuals aged 25 to 44 have declined by at least 5 percentage points between 2011 and 2021. In contrast, those aged 75 and older have seen an increase in homeownership rates during the same period.

The reasons behind seniors carrying mortgages into retirement are varied. Despite representing 14% of current mortgage holders, only 7% of seniors originated their mortgages at age 65 or older. This suggests that many are maintaining existing mortgages rather than acquiring new ones in retirement. Additionally, reverse mortgage debt has become one of the fastest-growing segments of lending, indicating that some seniors are leveraging home equity to support their financial needs.

In summary, the landscape of homeownership in Canada is shifting. Seniors are increasingly likely to hold mortgages, while young adults face challenges in entering the housing market. These patterns reflect broader economic and demographic changes influencing Canadians' financial decisions and housing opportunities.