Baby boomers approaching retirement age in B.C. are still spending a significant amount of their income paying off their mortgage.
A TD Canada Trust survey found only 24% of boomers own their home mortgage free, one of the lowest levels in the country, and well below the national average of 44%. Nearly a third in B.C. have more than 60% of their mortgage left to pay off.
By comparison, Alberta baby boomers were the most likely to have a mortgage-free home in Canada, with 60% having paid off their mortgage in its entirety. Only 10% have paid off less than 25% of their mortgage.
Affordability is a clear reason why boomers in B.C. still have a mortgage. But it’s also likely a factor in boomers’ desire to downsize their home. Almost half say a smaller home will help them save money and one-third want a smaller house with more luxurious features.
The survey also found almost half of boomers in B.C. are considering purchasing property in the U.S., one of the highest proportions in the country, second to Albertan boomers. Potential opportunities in the depressed U.S. real estate market is the primary spark for such a purchase with 17% saying they are already considering a U.S. purchase. Albertans were the most active in looking for U.S. property, with a quarter of boomers already looking for an investment or vacation home.