Rethinking Retirement: Why Paying Off Your Mortgage Isn’t the Only Path
For years, we’ve been told that paying off your mortgage before retirement is the ultimate financial milestone. And while that advice made sense a generation ago, today’s economy—and Alberta’s real estate market—offers new opportunities.
In fact, for many people approaching retirement, keeping a mortgage or tapping into home equity might actually give you more freedom, not less.
At Merge Mortgage Group, we work with Albertans (and future Albertans) who want to retire comfortably, stay in their homes longer, and use their home equity to build a flexible financial future. Whether you're settled in Calgary or Edmonton, relocating from Ontario or BC, or looking at Alberta’s up-and-coming secondary markets, your home could be one of your most powerful retirement tools.
Albertans Have Equity—Here’s How to Use It Wisely
Home values across Alberta are steadily growing. Combine that with relatively low property taxes and a lower cost of living than much of the country, and you’ve got the perfect setup to leverage your home without selling it.
Instead of viewing your home as just a place to live, think of it as a strategic financial asset.
Here’s how Albertans are using their home equity:
Refinancing to lower payments or access cash for renovations, debt consolidation, or health needs
Opening a HELOC for flexible, on-demand borrowing
Exploring reverse mortgages to increase monthly income without selling their home
Helping family with down payments, education costs, or shared property purchases
Why Being Mortgage-Free Isn’t Always the Best Goal
Let’s break down a few reasons why carrying a mortgage into retirement can actually be a smart move:
Investment returns can outweigh mortgage interest: If your investments earn 6–8% per year, and your mortgage rate is 4–5%, it may make sense to let your investments keep growing while carrying a small mortgage.
Liquidity matters more than ever: Having access to cash or credit (without selling investments or downsizing) can help you stay flexible and respond to life’s surprises.
Home values in Alberta are rising: In many cases, homes appreciate at a rate equal to or greater than the cost of borrowing. That means your equity continues to grow even as you access it.
You stay in your home longer: Whether you're in Calgary, Red Deer, or Lethbridge, using your equity can help you age in place with dignity and comfort.
3 Smart Ways to Use Your Home Equity in Retirement
1. Refinance Your Mortgage
If your income has shifted in retirement or you're looking for extra funds, refinancing can lower your monthly payments or give you access to a lump sum. Great for:
Renovations
Debt consolidation
Medical expenses or travel
2. HELOC (Home Equity Line of Credit)
A HELOC gives you a revolving credit line that’s secured by your home. You only pay interest on what you use, making it ideal for:
Irregular expenses
Emergency funds
Helping kids or grandkids with housing costs
3. Reverse Mortgage
For Albertans aged 55 and up, a reverse mortgage lets you access up to 55% of your home’s value without making monthly payments. The loan is repaid when you sell or move. Ideal if you:
Want to stay in your home
Need to increase monthly cash flow
Want to delay drawing down investments
Quick Comparison of Your Options
Planning to Age in Place? Equity Can Help
Many Albertans want to stay in their homes as they age—but that comes with costs. From home modifications to private care, those expenses can add up. Accessing equity can help cover:
Stair lifts, bathroom renovations, and other mobility upgrades
Part-time or live-in caregivers
Cleaning and support services
Private long-term care options while waiting for placement
Rather than draining your savings or being forced to sell your home, your equity can provide the support you need—while you stay where you’re comfortable.
Alberta’s Advantage: More Value, More Flexibility
Whether you’ve lived here for decades or just relocated from a higher-cost province, Alberta’s real estate advantage is clear:
Lower average home prices than Ontario and BC
Low property taxes
Plenty of new builds and communities in growth mode
Strong job markets and continued population growth
That means more Canadians are looking at Alberta as the right place to retire—not just for lifestyle, but for long-term affordability.
Let’s Talk About What’s Right for You
There’s nothing wrong with being mortgage-free—but it’s not the only way to retire well. The key is flexibility. With the right strategy, your home can support your lifestyle, your family, and your long-term plans.
At Merge Mortgage Group, we help Albertans make informed decisions about refinancing, HELOCs, reverse mortgages, or even buying a second property. No pressure—just expert advice based on your goals.
Ready to explore your retirement options without locking up your equity?
Reach out today and let’s build a flexible plan that works for you.
Sources:
Statistics Canada – Household balance sheet, national balance sheet and financial flow accounts
https://www150.statcan.gc.ca/n1/daily-quotidien/250305/dq250305a-eng.htmGovernment of Canada – General Information on Long-Term Care
https://srv111.services.gc.ca/generalinfo/indexStatistics Canada – Average Home Equity Data (Table: 14-10-0060-01)
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410006001RateSpy – What Will Canadians Do With All Their New Equity?
https://www.ratespy.com/what-will-canadians-do-with-all-their-new-equity-072219109#:~:text=Using%20Mortgage%20Professionals%20Canada%20data,now%20have%20over%2025%25%20equity.WOWA – Canada Housing Market Report
https://wowa.ca/reports/canada-housing-marketFisher Investments – Definitive Guide to Retirement Income
https://www.fisherinvestments.com/en-ca/campaigns/definitive-guide-to-retirement-income/1mMorningstar Canada – How to Use Your Home as a Retirement Asset in Canada
https://www.morningstar.ca/ca/news/248172/how-to-use-your-home-as-a-retirement-asset-in-canada.aspx
