Canadians are increasingly counting on their homes to carry them through retirement, with many expecting to draw on property wealth through sales, downsizing or refinancing.

While homes have long been a source of wealth for Canadians, they’re now taking on an even bigger role in retirement planning.

New data shows 62% of adults view homeownership as central to their long-term security, with nearly half of unretired homeowners (44%) planning to sell their home to fund retirement, according to the 2025 Canadian Retirement Survey from the Healthcare of Ontario Pension Plan (HOOPP).

At the same time, concerns about mortgage debt are rising sharply as 65% of homeowners with a mortgage now worry they won’t be able to pay it off before retirement, up from 45% in 2023.

Homeowners more likely to save, but still worried

The survey also highlights the financial divide between homeowners and renters. Among unretired Canadians, 71% of homeowners said they have set aside money for retirement at some point, compared with just 36% of non-homeowners.

That disparity extends to total savings as well. Just 19% of homeowners reported having less than $5,000 set aside, compared with 57% of non-owners. By contrast, 18% of homeowners reported having over $200,000 in savings compared to just 3% of non-owners.

Despite this advantage, many homeowners remain uneasy about their retirement outlook, with 44% saying they are counting on the sale of their home to secure their financial future. That’s up from 42% in 2024 and 38% in 2023.

Another 33% say they are exploring remortgaging options in retirement to free up additional funds.

Other key findings

• 78% of mortgage holders said rising payments have forced or will force them to cut back in other areas just to keep up with housing costs.
• An equal 78% said higher mortgage payments are reducing their ability to save for retirement.
• Younger Canadians are especially likely to expect to rely on housing wealth, with 55% of those aged 18 to 34 planning to use the sale of their home to fund retirement (compared to 44% overall and 41% of those aged 55 to 64).
• 38% of homeowners said they would sell their home and downsize if they needed extra retirement income.
  • 24% said they would consider going back to work full- or part-time
  • 14% said they would use a reverse mortgage to stay in their home
• 46% of Canadians are concerned about mortgage, rent or other home payments in retirement.
• 48% of Canadians said they’re worried about what interest rates will do to their ability to afford current or future mortgage payments.
• 84% of renters said they are worried about the rising cost of rent.

This article was written for Canadian Mortgage Trends by:

From tax implications to AML compliance, here’s what borrowers need to know before turning digital wealth into a mortgage.

Crypto mortgages are becoming a hot topic in Canada, but there’s still a lot of confusion around how they work. For Canadians with significant holdings in Bitcoin, Ethereum, or other digital assets, the idea of using that wealth toward homeownership is appealing.

However, turning crypto into a viable down payment, or leveraging it as collateral, isn’t as simple as it sounds. Between tax implications, lender skepticism, and regulatory requirements, the path from digital wallet to mortgage approval requires careful planning and documentation.

Case studies: when crypto becomes a mortgage down payment

1) Recently, Brian Hogben of Mission 35 Mortgages worked with a client who had already converted cryptocurrency into Canadian dollars. The funds had been sitting in a bank account for over 90 days, typically enough to meet lender documentation standards.

The challenge was finding a lender, and more importantly, an underwriter, who understood crypto. Several major banks refused to proceed, despite the funds being seasoned and in fiat. Progress finally came through Bank of Montreal, which Brian explained has a specialized underwriting team familiar with crypto-related transactions.

After tracing the fund origins and confirming they were compliant with anti-money laundering (AML) standards, BMO approved the mortgage. It was a breakthrough, but it also highlighted how new and misunderstood crypto remains in the mortgage space.

2) A few years ago we ran into the exact same thing with clients purchasing a home in the Greater Toronto Area. They found us only one week before their closing date as their bank had withdrawn their mortgage approval. The reason was because the down payment was largely coming from digital wallets containing their crypto funds.

The only available solution was a private first mortgage, which we placed with Vault Mortgages. Everything went well, in spite of the tight timeline, and the buyers avoided losing their $250,000 deposit.

Interestingly, when they wanted to refinance within six months, they ran into the exact same problem. The banks still wanted to verify their down payment for the original purchase.

What is a crypto mortgage and how does it work?

Crypto mortgages typically fall into one of two categories:

• Crypto-funded mortgage: You sell your crypto, convert it to Canadian dollars, and use those funds as your down payment. This is more common but comes with tax consequences.
• Crypto-backed mortgage: You pledge your crypto as collateral without selling it. This may help you avoid triggering capital gains tax, but requires a lender capable of assessing and managing that risk.

How crypto-collateralized loans work

If you want to access liquidity without selling your crypto, a crypto-backed loan is another option. Here’s how it works:

1. Deposit crypto as collateral

You transfer your crypto to a platform, where it is held in a secure wallet or smart contract. Platforms such as YouHodler and Ledn support this model.

2. Loan-to-value (LTV) ratio

You can typically borrow between 30% and 70% of your crypto’s value. For example, pledging $10,000 worth of Bitcoin may get you a $5,000 loan.

3. Disbursement

Loans are issued in fiat (e.g., CAD, USD) or stablecoins. Most do not require a credit check and can be approved quickly.

4. Repayment and interest

Terms vary. Some platforms offer flexible repayment options; others require fixed schedules. Once the loan and interest are repaid, your crypto is returned.

5. Liquidation risk

If the value of your crypto drops and your LTV exceeds a certain threshold, you may be required to add collateral. Otherwise, your crypto may be liquidated.

6. No taxable event

Since you are borrowing, not selling, there is no capital gains tax event. This can be beneficial from a tax-planning perspective.

A simpler, safer alternative: using crypto ETFs for mortgage planning

For a more straightforward path, consider using crypto ETFs instead of direct crypto holdings. ETFs allow you to gain exposure to digital assets without managing wallets, keys, or exchange accounts.

Held through mainstream brokerages, including in TFSAs and RRSPs, crypto ETFs are easier for lenders to understand and verify, avoiding the friction that often comes with direct crypto assets.

Leading crypto ETFs in Canada

These are some of the top crypto ETFs available to Canadian investors:

• BTCC (Purpose Bitcoin ETF): The first Canadian Bitcoin ETF, with CAD and USD options and a carbon-neutral version
• BTCQ (3iQ CoinShares Bitcoin ETF): Physically-backed BTC, held in cold storage
• FBTC (Fidelity Advantage Bitcoin ETF): Designed for registered accounts
• ETHH and ETHX (Purpose and CI Galaxy Ethereum ETFs): Offer direct ETH exposure, with or without staking
• IBIT (iShares Bitcoin ETF): Managed by BlackRock, a major global asset manager

Several ETFs now include additional exposure to AI stocks or newer crypto assets like Solana, expanding diversification options within this space.

Naturally, our readers should NOT assume this to be investment advice. Ask your licensed financial adviser for their opinion before proceeding please.

Can I use crypto as a down payment?

Yes, but there are strict conditions:

• You must convert the crypto to Canadian dollars
• Maintain a documented paper trail of the sale and deposit
• Be prepared to explain the origin of your funds for AML compliance

Many lenders will still be hesitant. Working with a mortgage professional familiar with these requirements and a lender that understands crypto is essential.

Is it legal and safe in Canada?

Yes, but regulatory guidance is evolving. Lenders must comply with OSFI and FINTRAC standards, which include thorough AML and source-of-funds verification.

OSFI is expected to implement new digital asset rules in 2025, which may influence how Canadian financial institutions handle crypto-collateralized products.

Key risks to consider

• Price volatility: A drop in crypto value can lead to margin calls or liquidation
• Lender restrictions: Many banks still reject crypto-related funds
• Platform risk: Some crypto lenders have gone bankrupt
• No deposit insurance: Crypto held as collateral is not insured by CDIC
• Compliance complexity: Documentation, tax reporting, and regulatory scrutiny can be significant

Who offers crypto-backed loans?

The following platforms offer crypto-backed lending services:

• Ledn (Canada-based)
• APX Lending (Canada-focused)
• Binance
• Coinbase
• Crypto.com
• YouHodler
• SALT Lending
• Aave and Compound (DeFi protocols)

For Canadians, I am told Ledn and APX Lending provide the most relevant regulatory alignment.

How does CRA treat crypto in mortgage scenarios?

Under CRA guidelines, cryptocurrency is treated as a commodity. Selling it to fund a down payment is a taxable event, and any capital gains must be reported.

However, borrowing against your crypto is not a disposition and does not trigger capital gains taxes, at least under current rules. Regardless, thorough documentation is critical.

Our advice

Crypto-backed mortgages and crypto-collateralized loans offer new possibilities, but they’re not ideal for everyone. If you’re a crypto holder considering homeownership in Canada:

• Convert your crypto to Canadian dollars early, and let it season for at least 90 days
• Alternatively, accumulate your crypto wealth in Exchange Traded Funds
• Document everything: sales, transfers, deposits, and sources of funds
• Work with professionals who understand both traditional lending and crypto
• Be ready to meet rigorous compliance and verification requirements

Canada’s mortgage landscape is still catching up to the digital asset world. Planning ahead is key to avoiding delays or declined applications.

This article was written for Canadian Mortgage Trends by:

The rent-versus-buy debate has long divided financial experts and aspiring homeowners, with no clear winner in sight.

The traditional argument holds: While buying a home can build long-term equity and stability, renting can provide flexibility and fewer upfront costs. But as home ownership becomes a far-fetched dream for many young Canadians, can renting for life be a viable option?

Alex Avery, author of The Wealthy Renter, thinks so.

“It’s different for every person, and each individual’s needs change over time, but I’m still a firm believer that renting is a great option,” he said.

Despite rental prices having soared since publishing his book in 2016, Avery says renting is still cheaper and carries less risk than buying.

“People compare mortgage payments to monthly rental rates, but mortgage payments don’t begin to cover the full costs of home ownership,” he said. These costs can include notary fees, realtor commissions and region-specific taxes when purchasing the property as well as ongoing costs such as mortgage interest, property taxes, insurance, and various maintenance and repair expenses.

Avery was inspired to write his book during what he calls was a “speculative bubble” in the housing market at the time that he said created a perception of home ownership as an “easy out for savings,” especially in urban centres like Toronto and Vancouver.

“[Young Canadians] were being pressured to buy a condo when the math never made any sense,” he said.

Vancouver realtor Owen Bigland’s calculations paint a different picture however. With average monthly rent for a one-bedroom unit in his city now hovering around $2,800, a lifetime renter could spend at least $1.3 million by the time they’re 65 (not accounting for rent increases or inflation), according to Bigland.

“And you’ll have zero to show for it. Where’s the savings here?” he questioned.

Even if monthly rent was cheaper than a mortgage payment, Bigland said many Canadians will likely spend any savings rather than invest it and grow their wealth.

“A lot of Canadians don’t have the discipline to save as much as they should,” said Sebastien Betermier, an associate professor at McGill University who studies Canadian household spending.

With rents making up at least a third of household expenditures, and homes making up 70% to 80 % of homeowners’ wealth portfolios, Betermier says both renters and homeowners alike are exposing themselves to big risks.

Recent data from a survey by the Healthcare of Ontario Pension Plan and Abacus Data suggests the same. More than a third of Canadians report having less than $5,000 in savings, and those who own a home are increasingly relying on their home equity to fund their retirement.

Bigland preaches home ownership for this very reason. He encourages chipping away at your mortgage and building equity so you can benefit from any price appreciation in the future.

“The only real cash shelter we get in Canada is the principal residence exemption,” he said.

Put another way, “you’re essentially renting [the home] from yourself,” said Betermier. He adds that your home can act as collateral should you need to borrow against it someday. Most mortgages from big banks typically include a built-in home equity line of credit at a favourable rate, according to Bigland. “It’s accessible money without selling your home.”

Avery, however, doesn’t buy this argument.

“It presupposes that housing is a safer investment than other investments,” he said. “There are many places where house prices have gone down, where employment prospects change over time.”

As an alternative to relying on your home as an investment, Avery suggests putting your money into an RRSP, TFSA, and the FHSA which doesn’t necessarily need to go toward a home purchase. “You can learn about index ETFs too. There’s a lot of different ways to invest your money,” he said.

Avery, who’s gone the home ownership route himself, doesn’t think buying is a bad decision, but warns against it if you’re banking on it as an investment tool.

“That’s conflating two different objectives,” he said. “One is to house yourself, and the other is to generate wealth.”

But Bigland, who’s also written a book on real estate and stock investing, says you should be doing both. He agrees renting can make sense in some situations like if you’re anticipating a change in jobs, but you should consider buying if you can commit to a location for eight to 10 years.

He suggests first-time buyers start with older buildings close to public transit often sitting on valuable pieces of land. “You’ll probably have a developer [buy] in 10 or 15 years, and that might be your exit strategy,” he said. “Even if you’re a blue-collar guy, if you can get $40,000 down, maybe even forgo the car for a little while, you can do it.”

This article was written for Canadian Mortgage Trends by Cathy Miyagi.

Borrowers are caught in a mortgage rate market that changes by the week, with little sign of stability ahead.

With every passing week, the Bank of Canada faces conflicting economic signals, leaving Canadians guessing about its next move and triggering rapid changes in mortgage rates.

After several weeks with the lowest 5-year fixed rates holding above 4%, several lenders are now offering options in the high-3% range, generally for high-ratio borrowers.

“There was a two-month period where there were lots of rates available in the three’s … and then suddenly, everything headed for the fours over about a two-week period,” says Ron Butler of Butler Mortgage. “Then bond yields took a roughly 25 basis-point reduction, and now we’re back in this very aggressive state.”

Butler notes that while not every lender has followed suit, a number are again pricing select terms below 4% in the past few days, a trend that could just as easily swing back.

“Every single news item to do with interest rates, both here and in the United States, can trigger a change in bond yields and rates,” Butler says. “What we urge people to understand is that it is that volatile; rates can all go back into the fours very soon.”

Conflicting economic signals

The current volatility isn’t driven solely by the trade war and uncertainty over long-term policy, though both play a role.

According to rate expert Ryan Sims of TMG, the market is still trying to figure out how past changes to trade policies and leadership regimes are affecting both Canada and the United States.

“We’ve got two opposing forces right now and the bond market is reacting to every single report,” he says. “You’ve got inflation in Canada slowly creeping up bit by bit, but then you’ve also got the horrible jobs numbers we saw last week.”

High inflation typically pushes the Bank of Canada to raise rates, while weak employment and a slowing economy point to cuts. What’s unusual now is that both forces are appearing at once, Sims says.

Further complicating the matter is the American economic picture, which directly influences Canada’s 5-year bond yield, and with it, fixed mortgages. Though there are some cracks starting to form, the U.S. economy appears to be outpacing expectations.

“Whether you agree with the current administration or not, the data is coming in strong — employment is healthy, GDP is growing at a good clip, inflation is fairly malignant right now — so I don’t think you’ll get the rate cut from the U.S. Fed that everyone was banking on this year,” Sims explains. “It’s a lot harder for the Bank of Canada to cut when the U.S. Fed isn’t cutting.”

Even as the Bank of Canada shows little inclination to cut its policy rate, which drives the prime rate and variable borrowing costs, Canada’s big banks have been lowering mortgage rates after earlier hikes to win over renewers in a slow market.

Sims therefore advises clients to use this competitiveness to their advantage. “I’m telling clients to call their bank and say, ‘I’m working with a broker, I’m actively shopping, give me the best possible deal you can; you get one opportunity,’” he says.

The best options for borrowers right now

With the market shifting every few weeks and little clarity on its longer-term direction, experts advise borrowers to base decisions on their own risk profiles.

“I prefer the variable, and the only reason is because I have a free option to lock in at any point in time should I want to do that,” Sims says. “If I see that inflation is not letting down and I need to lock in, I can do that, but if I lock in now and rates plummet, I’m facing high [prepayment] penalties.”

The variable option, Sims adds, could offer more flexibility if Canadians face widespread job losses or economic stress in the coming years, challenges that may be tougher under a fixed mortgage.

However, Robert McLister, a mortgage strategist at MortgageLogic.news, cautions that only those prepared to monitor the markets closely and act quickly should consider a variable rate in today’s environment.

“Unless you’re bulletproof financially and need shorter-term penalty flexibility, go easy on variables,” he advises. “If you model out their performance using today’s rates and forward rate projections, their performance edge is limited for most people. Add in the real dangers of inflation and Ottawa’s fiscal mismanagement, and their appeal shrinks further.”

Instead, McLister recommends a fixed-rate mortgage of three or five years for most, or a hybrid option for those with a little bit more appetite for risk.

“Get a sufficiently long rate hold if you’re home shopping or refinancing,” he adds. “The point is: don’t bet the ranch on much more [interest rate] relief from here.”

This article was written for Canadian Mortgage Trends by:

The Canadian Real Estate Association says home sales in July rose 6.6% compared with a year ago, continuing an upward trend after the market had slowed in previous months.

A total of 45,973 homes changed hands last month, up from 43,122 in July 2024.

Home sales rose 3.8% on a month-over-month basis from June, with transactions up a cumulative 11.2% since March.

“With sales posting a fourth consecutive increase in July, and almost four per cent at that, the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived,” said CREA senior economist Shaun Cathcart in a press release.

“Looking ahead a little bit, it will be interesting to see how buyers react to the burst of new supply that typically shows up in the first half of September.”

The association said the bump in sales activity was led overwhelmingly by the Greater Toronto Area, where transactions have now rebounded a cumulative 35.5% since March.

TD economist Rishi Sondhi said “pent-up demand temporarily sidelined earlier in the year returned to markets with some force last month.”

“Indeed, it looks as though the sales recovery that should have happened earlier in the year after significant (interest) rate relief in 2024 was simply delayed some months,” he said in a note.

“Some reduction in economic uncertainty should bring back more buyers in B.C. and Ontario, while further Bank of Canada rate relief could offer modest stimulus in the back half of the year. However, barriers remain, such as stretched affordability in several provinces and a weaker job market.”

Meanwhile, new listings were up 0.1% month-over-month.

There were 202,500 properties listed for sale across Canada at the end of July, up 10.1% from a year earlier and in line with the long-term average for that time of the year.

The actual national average sale price of a home sold in July was $672,784, up 0.6% from a year ago.

CREA’s own home price index, which aims to represent the sale of typical homes, was unchanged between June and July 2025.

BMO senior economist Robert Kavcic said the housing market has looked “very balanced and stable” through the summer, with significant regional variation persisting.

“At the national level, sales have steadily climbed back toward longer-term norms, inventory is elevated but not overly saturating the market, and prices are effectively flat,” he said in a note.

“In markets where price corrections are ongoing, we seem to be getting closer to levels that are bringing some buyers off the sidelines.”

This article was written for Canadian Mortgage Trends by Sammy Hudes