For years, many Canadians viewed retirement as the point where the mortgage would finally be paid off.

That’s changing.

Recent reports show that Canadians approaching retirement are carrying more mortgage debt than ever before, and many older homeowners are delaying plans to downsize. At first glance, this might not seem very relevant to a first-time homebuyer in Alberta. But in reality, these trends are having a major impact on affordability, housing supply, family finances, and even mortgage qualification strategies for younger buyers.

As a mortgage broker working primarily with first-time buyers, I think this is an important shift to understand because it helps explain why the housing market feels so competitive and financially stressful for many Canadians today.

Canadians Are Carrying Mortgage Debt Longer

According to recent data highlighted by Canadian Mortgage Trends, Canadians aged 55 to 64 saw the fastest growth in mortgage debt in 2025. There are a few reasons for this.

Many homeowners bought later in life or refinanced during periods of rising home values. Others helped children or family members enter the housing market by accessing equity from their homes. Some simply saw higher living costs, rising interest rates, and larger mortgage balances stretch repayment timelines longer than expected.

This is becoming increasingly common across Canada. The old idea that people enter retirement completely debt-free is no longer guaranteed.

Why Downsizing Is Not Happening as Expected

For years, many people assumed that older homeowners would eventually sell larger family homes and move into smaller properties or condos. That would theoretically create more inventory for younger buyers. But that is not happening nearly as quickly as expected.

Another recent report found that many retirees are delaying downsizing plans because they do not feel it is the right time to sell. Some are concerned about weaker housing markets. Others are worried that downsizing no longer saves as much money as it once did.

In many cities, condos, townhomes, and smaller properties have become very expensive themselves. Once you factor in moving costs, legal fees, property taxes, condo fees, and higher interest rates, downsizing may not feel financially attractive. Many retirees also simply prefer staying in their current home longer.

The result is that fewer family homes are entering the market than many experts expected.

Why This Matters to Alberta First-Time Homebuyers

You might be wondering what this has to do with buying your first home in Alberta. Quite a bit, actually.

When fewer older homeowners sell, there are fewer detached homes available for younger families. That can keep prices elevated in certain segments of the market, especially in desirable neighbourhoods.

Even in Alberta, where affordability is generally better than places like Toronto or Vancouver, limited supply still affects competition and pricing. For first-time buyers, this means you may need to:

• expand your search area
• consider different property types
• adjust expectations on size or features
• move faster when the right home becomes available

Family Financial Support Is Becoming More Common

One of the more interesting findings in these reports is that some older homeowners are taking on debt to help younger family members buy homes. I see this regularly in my own work. Parents are helping with:

• down payments
• gifted funds
• co-signing
• co-borrowing
• temporary financial support during qualification

With home prices and qualification rules becoming more difficult, many first-time buyers rely on some level of family assistance. There is nothing wrong with that, but it also means families are staying financially connected much longer than they used to. In some cases, parents are delaying their own retirement goals to help their children enter the housing market.

Mortgage Decisions Matter More Than Ever

Another reason this trend matters is because today’s buyers need to think long-term. Stretching too aggressively to buy a home can create financial pressure later in life.

Many Canadians who bought during periods of ultra-low rates are now renewing at much higher rates, which has significantly increased monthly payments for some households. That does not mean homeownership is a bad decision. Far from it. But it does mean buyers should focus on sustainable affordability instead of simply qualifying for the maximum possible amount.

When I work with first-time buyers, we often discuss questions like:

• What happens if rates rise later?
• Will you still be comfortable financially?
• Are you planning to start a family?
• Could one income temporarily support the household?
• Are condo fees or property taxes likely to increase?
• Would a slightly lower purchase price reduce stress?

These conversations matter because homeownership should improve your financial future, not overwhelm it.

Alberta Buyers Still Have Opportunities

The good news is that Alberta remains one of the more affordable housing markets in Canada. Compared to many major cities, buyers here can still find opportunities to purchase detached homes, townhomes, and condos at price points that are much more manageable. That is one reason Alberta continues attracting interprovincial migration and first-time buyers.

But affordability does not mean buyers should ignore long-term planning. The goal is not just buying a home today, but building financial stability over time.

My Advice for First-Time Buyers

If there is one takeaway from these recent trends, it is this:

Think beyond just getting approved.

A mortgage is not only about what a lender says you qualify for. It is about creating a financial plan that still works years from now. For first-time buyers, that means:

• keeping an emergency fund
• avoiding becoming house-poor
• understanding future renewal risk
• choosing a payment you can realistically manage
• planning for future life changes

The housing market will always shift over time. Interest rates will move and home values will rise and fall. But buyers who make sustainable decisions tend to put themselves in the strongest long-term position. And increasingly, that long-term thinking matters more than ever.

Contact me for personalized advice or to start planning your first home purchase.