Here’s a twist you might not expect in today’s market: younger Canadians are actually paying down their mortgage debt — while older homeowners are taking on more.

According to new data from Statistics Canada, homeowners under 35 reduced their mortgage balances by nearly 5% year-over-year in Q4 of 2024. Surprised? You’re not alone.

🧑‍💼 Why Are Young Homeowners Saying Goodbye to Debt?

Several factors are behind this trend:

• Rising housing costs have forced some young buyers out of the market.

• Others are taking advantage of the low-interest mortgages they locked in during 2020–2022 and aggressively paying them down.

• Many are also moving into more affordable homes — or even moving back in with family.

• And let’s not ignore the “Bank of Mom and Dad” — financial help from family is helping some reduce debt faster.

👵 Meanwhile… Older Canadians Are Borrowing Like It’s 2019

On the flip side, Canadians aged 55 and up are increasing their mortgage debt — with those 65+ seeing an 8.3% rise. Why?

Older homeowners are tapping into their home equity to:

• Buy investment properties

• Help adult children with down payments

• Or just unlock cash for other financial goals

With home equity gains over the years, many feel comfortable borrowing now — especially with interest rates projected to decline.

💡 What’s Going on With Interest Rates?

After a series of aggressive hikes, the Bank of Canada started easing rates again in late 2024. By the end of the year, the policy rate had dropped from 5.00% to 3.25% — a welcome relief for anyone managing debt.

As a result:

• Interest payments still rose, but at a much slower pace than before.

• Debt-to-income ratios improved — especially for younger households.

💰 The Wealth Gap Is Holding Steady — But Income Inequality Isn’t

While both lower- and higher-income households saw their net worth increase, the top 20% saw the biggest gains, mostly thanks to financial market growth. The good news? The wealth gap didn’t widen in 2024.

But the income gap did continue to grow — just a bit more slowly. Disposable income rose 5.9% for the wealthiest households, compared to 3.6% for the lowest earners.

What Does This Mean for You?

Whether you’re a first-time buyer, a downsizer, or somewhere in between — this data shows that your mortgage strategy matters.

✅ Younger buyers: Take advantage of lower debt levels and build a smart plan for future rate changes.
✅ Older homeowners: If you’re tapping into equity, make sure it’s working for you — not against you.

Need help reviewing your mortgage or planning your next move? Let’s talk — I’m here to help you make sense of it all.