Canada: Mortgage or Retirement Savings First?

With ~1M Canadian mortgages due for renewal in 2026, more households are approaching retirement while still carrying home debt and weighing where cash works hardest.
The core comparison is simple: mortgage cost versus after-tax investment return. If returns stay above borrowing costs, directing money to savings can make sense.
The balance can shift when renewals bring higher payments. Analysts expected market volatility ahead, and some borrower simulations showed payment jumps near 40%.
Because primary-residence mortgage interest is not tax-deductible, every avoided interest dollar stays with you. Carrying debt into your 60s can also trigger more taxable withdrawals.
Many lenders allow annual lump-sum prepayments of 10% to 20% of the original balance, giving Canadians flexibility if retirement timing and taxes favor faster payoff.