In contrast to other age groups in Canada, the boomer generation of homeowners isn’t as concerned about being mortgage-free when they retire, according to the latest findings in the Royal Bank of Canada’s fourteenth annual homeownership survey.

Although 66% of all Canadians think it’s very important to have their mortgages entirely paid off by the time they retire, this sentiment decreases with age, dropping to 59% among those aged 55 plus — the lowest percentage among all age groups.

More than a third (37%) of the 55 plus age group still has a mortgage on their homes, compared to 71% of those aged 45-54 who have a mortgage — an indication that many older Canadians are successfully paying down their mortgages leading up to retirement. While the national average remaining on Canadians’ mortgages stands at $105,557, Canada’s boomers have an average of $80,331.

“Most Canadians still think it’s important to pay off their mortgage by the time they retire, and we see a huge jump in those that have paid it off once they hit 55. Yet, it appears that the level of importance in being mortgage free in retirement is decreasing for boomers,” explained Catherine Adams, vice president of home equity financing for RBC.

The poll also showed that boomer homeowners with a mortgage have the highest comfort level of all age groups with variable rate mortgages. Almost one-third (30%) of homeowners aged 55 plus who have mortgages said that when they next renewed their mortgage, they would opt for a variable rate option — a higher percentage than any other age group.

“We found this particularly interesting, as older Canadians would recall the double-digit interest rates of the 1980s, and might be more inclined towards the security of a fixed rate,” added Adams. “But boomers also have enough mortgage experience to have uncovered one of the secrets to saving money – they know that variable rates often bring significant savings in interest costs over the course of a mortgage, while at the same time offering the certainty of predictable payments.”

As expected, boomers are also less likely to want to upsize their homes when considering a future property purchase. Thirty-seven% of those 55 plus who intend to purchase a home in the next two years indicated they would prefer a smaller home, while 40% would prefer the same size home. Only 22% are looking for a bigger home. At 15%, both younger (18-24) and boomer homebuyers (55+) are more likely to be thinking about buying a condo or loft, compared with 7%-9% of those aged 25-54.

“We’re definitely starting to see the influence of boomers on the housing market,” noted Adams. “Boomers may well be seeking the lifestyle flexibility to do some of the things they’re looking forward to in their retirement years, without the property upkeep concerns of a larger home.”