According to the TD Canada Trust Boomer Buyers Report, more than half (56 per cent) of Canadian baby boomers have not paid off their mortgages.
TD polled 1,000 boomers born between 1946 and 1964 for the Boomer Buyers Report conducted in October 2010.
Of those who have not paid off their mortgage, one third have paid off more than 75 per cent of their mortgages while another quarter of the boomers have paid off less than 25 per cent!
It seems that, even though 75 per cent of baby boomers think it’s a good idea to pay off their mortgages before they retire, they are not putting their words into action.
Of course it’s a wise idea to have a mortgage paid off before retiring. With the cost of living endlessly on the increase and retirement lifestyles becoming more and more pricey, doing away with mortgage payments would make retired life much less stressful and free up money to take vacations and put a little away for the grandchildren.
These findings may mean more baby boomers downsizing than expected. Four in five (80 per cent) plan to downsize to a smaller home. Almost half (46 per cent) plan to do so to save money, while 36 per cent want to enjoy the more luxurious features of condo living. More than half of baby boomers (61 per cent) are hoping to find a detached home to retire to while another 24 per cent are looking for a condo. But a total of 49 per cent said they don’t plan to move and are happy in their current home, continuing to pay off their mortgage at a snail’s pace.
With a market already bracing for the onslaught of thousands of baby boomer homes going up for sale in the next 10 years, the fact that many boomers will still have unpaid mortgages carrying forward to their retirement may mean more sell than expected, and they sell sooner and/or for less than anticipated.
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