Our homes are among our most valuable financial assets, but they shouldn’t be our only strategy

Not long ago, a couple in their late 50s invited me over to their home in Etobicoke. We sat at their kitchen table, the same one where they had celebrated their kids’ birthdays, spread out homework, and discussed family holidays. That day, the atmosphere felt different.

“Jay,” the husband asked quietly, “Is our house… our retirement plan?” His wife looked at him, then back at me. Their question wasn’t just about the property, it was about the next chapter of their lives, and a question I’m hearing more often these days.

For decades, Ontarians believed a comforting truth: homes only appreciate. A house wasn’t just a shelter, it was a retirement fund, a safety net, a guaranteed legacy, but in today’s market, that “truth” is being questioned.

The 2025 Canadian Retirement Survey highlights changing patterns behind these stories. 44% of working homeowners now plan to sell their house to fund retirement, an increasing trend each year. 33% are thinking about refinancing or remortgaging to access cash. Yet, 65% of homeowners with mortgages worry they won’t pay them off before retiring, a notable rise from two years ago. The idea of a mortgage-free retirement is now seen more as a gamble than a guarantee.

A home is a valuable asset, but it shouldn’t be your sole retirement plan. Use RRSPs, TFSAs, and other investments to create a diversified strategy. Think of your home as one leg of a three-legged stool; if it’s the only one, the stool tips over. Equity isn’t just about market fluctuations; it’s also about maintenance. A neglected roof, old windows, or an outdated furnace can lower your resale value by tens of thousands. Protecting your home means safeguarding your retirement.

If downsizing is part of your retirement plan, do the math before listing. After: realtor fees, land transfer tax, legal costs, and moving expenses, the net amount might be less than expected. Planning ahead helps avoid disappointment. Tools like HELOCs, or reverse mortgages can help access funds, but they aren’t free money. I often tell clients to see them as safety nets, not hammocks.

After many conversations around the kitchen table, the Etobicoke couple decided to downsize to a condo. Even in today’s softer market, they released enough equity to give them some breathing room and peace of mind.

Not all my clients want to sell. Take Marjorie, a retired teacher in Mississauga. Her house has lost nearly $250,000 in value since the peak and selling feels like giving up too much ground. Instead, she renovated her basement into a legal suite. Within a few months, she had reliable tenants, a young couple just starting, and suddenly, she was earning over $1,600 a month in rental income. Not only did it cover her property taxes and utilities, but it also gave her the freedom to keep her equity intact while the market recovers. Marjorie often tells me she sleeps better at night now. “It’s not just the money, Jay,” she said once with a smile, “It’s knowing my retirement doesn’t depend on selling at the wrong time.”

These stories remind us that our homes are among our most valuable financial assets, but they shouldn’t be our only strategy. The most brilliant move Ontarians can make now is to see their home not as the entire retirement plan, but as part of a bigger puzzle. Whether that means downsizing, renting, or using equity wisely, the key is to plan and safeguard what you’ve built. When retirement comes, you want to be prepared, whether the market is booming, or declining.