Canadian homeowners who have mortgages don't believe that they will be mortgage-free until they are, on average, 57 years old, according to a new CIBC survey.
Residents of B.C. had among the longest repayment expectations in Canada at age 59.
Last year's survey found that the average Canadian homeowner expected that they would be mortgage-free by age 55.
Canadians are taking some positive steps to accelerate mortgage repayment but it is their non-mortgage debt that may be the biggest factor in how quickly they can become mortgage free, the poll found.
That's because 50% of Canadian homeowners say their non-mortgage debt, such as credit cards and lines of credit, has increased since they first took on their mortgage. These Canadians were also less likely to be making lump-sum payments to their mortgage, citing a lack of funds as the primary reason.
"Being mortgage-free sooner can help accelerate retirement savings, but carrying a mortgage into your late 50s can have the opposite effect and make it more challenging to reach your long-term savings goals," said Colette Delaney, CIBC executive vice-president of mortgage, lending, insurance and deposit products.
Of those who said they have taken on additional debt since buying a home, only 11% were able to make an extra payment on their mortgage last year.
