I’m 60 and plan to retire in 7 years with over $8K a month of income. Is buying my first home now a smart move for retirement?

Owning a home is a financial and personal milestone for many Canadians, but is there an age by which you should aim to achieve this goal?

Let’s consider the hypothetical case of Suzanne: She’s 60, lives in Winnipeg and has worked as a university librarian for most of her career. She earns $87,000 a year and plans to keep working until age 67 so she can collect her full pension benefit.

Suzanne has been married twice. Her first marriage ended in divorce and they had no children. Her second marriage ended five years ago when her husband died, leaving her with the $750,000 in his retirement accounts. During their time together, they lived in his home with his children from a previous marriage.

When her second husband died, he left the house to his children. Suzanne remains close with her blended family, but the arrangement means she doesn’t truly own the home she lives in. As retirement gets closer, she wants a place of her own — somewhere she can settle in for the long term.

Now Suzanne is facing a big question: Does buying a first home at age 60 make financial sense, especially with retirement only seven years away? We break down the numbers and explore whether buying a home later in life can be a smart move when nearing retirement.

Can Suzanne afford to buy a first home before retiring at age 67?

Suzanne’s financial situation is solid — but it isn’t unlimited.

She estimates her defined-benefit pension will pay about $4,000 a month once she hits retirement age at 67. On top of that, she expects to receive Canada Pension Plan (CPP) benefits and Old Age Security (OAS).

According to the Government of Canada, the CPP average monthly payment for new beneficiaries is around $848.37 (1). OAS payments vary by income and qualifying years, typically up to about $740 a month for ages 65 to 74, before clawback (2). Based on Suzanne’s contribution history, these amounts combined add up to roughly $2,200 a month, depending on when she starts collecting.

Her late husband’s $750,000 in retirement savings provides an important cushion. However, that money will need to last 20 to 30 years, presuming an average life span of 83.9 to 84.9 years (3), with the possibility Suzanne could live well into her 90s. Using a conservative 4% withdrawal rate, those savings could generate approximately $30,000 a year, or roughly $2,500 a month before tax.

With workplace pension, CPP and OAS combined, Suzanne could earn around $8,700 a month in retirement income. That’s comfortable, but it doesn’t leave much room for error — especially as cost of living, inflation, home maintenance costs and other expenses add pressure over time.

If Suzanne bought a home near the Canadian benchmark price of about $680,000 as of late 2025 (4), a 20% down payment would approximately cost $136,000 up front, leaving her with a $544,000 mortgage. At current mortgage rates — ranging anywhere between 3.89% and 5.59%, depending on the term (5) — and 25-year amortization, her monthly payment can range anywhere between $2,890 to $3,200, depending on the mortgage she selects. This is the monthly amount before property taxes, insurance and maintenance are factored in.

Non-mortgage housing costs

Once these additional costs are included, Suzanne’s total monthly housing bill climbs further:

Property taxes. Average property taxes in Canada typically range from about 0.5% to 2.5% of a home’s assessed value, but some areas can be higher (6). On a home worth $680,000, Suzanne could see her annual property taxes could fall anywhere between $3,400 to $10,200, or about $280 to $850 a month, depending on where the home is located.

Home insurance. The data on average premiums across Canada indicate homeowners typically pay around $780 to $2,500 a year for home insurance, depending on the province, coverage level and risk factors. That works out to approximately $65 to $210 a month on average for a detached home (7).

Maintenance and repairs. A common rule of thumb is to budget about 1% of a home’s value on annual maintenance and repairs — equivalent to $6,800 a year, or about $560 a month for Suzanne.

At the upper end, Suzanne’s expected monthly nonmortgage housing costs would be approximately $1,600, not including utilities. Keep in mind, property taxes increase over time, and major repairs such as replacing a roof aren’t accounted for in this estimate.

That level of spending would eat up more than half of Suzanne’s projected monthly retirement income — especially once her mortgage payment, utilities, groceries and transportation costs are added in.

Suzanne also needs room in her budget for unexpected expenses and enjoying her retirement. At 60, with seven working years left, protecting her liquidity and keeping monthly obligations flexible should be priority.

A more cautious approach may be to delay buying, or look into smaller, lower-maintenance options like a condo — ideally with a larger down payment to reduce ongoing costs. Another option is to continue renting and direct more of her income into savings, keeping her options open until her pension, CPP and OAS are fully in place.

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The advantages of renting vs. owning

There are some upsides to renting your home versus owning it outright.

Suzanne’s current living arrangements may not be permanent. While she may be paying little to no rent today, informal housing arrangements between family members can change quickly. If her stepchildren decide to sell the home or ask for market-level rent, Suzanne could be forced to make a new housing decision before she’s financially or emotionally prepared.

For now, renting in Winnipeg remains relatively affordable compared with many other Canadian cities. The Canadian Mortgage and Housing Corporation shows the average rent for a two-bedroom apartment in Winnipeg was $1,571, and a one-bedroom was priced just over $1,230 as of October 2025 (8).

These rent levels mean Suzanne could keep her main housing costs to under one-quarter of her projected $8,700 monthly retirement income, leaving her plenty of room for any additional health care or surprise expenses — and maybe enough to enjoy her retirement.

Bottom line

Buying a first home at 60 isn’t entirely out of reach, but it does demand a careful balance between emotional security and financial flexibility. For someone retiring on around $8,000 a month, taking on a $680,000 home can strain cash flow and reduce liquidity.

In many cases, a more modest purchase — or renting while your investments grow — can better protect long-term stability. Ultimately, the right choice is the one that delivers the greatest peace of mind, whether that comes from owning a home or keeping a strong financial cushion for life’s uncertainties.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Government of Canada (1, 2); Statistics Canada (3); Wowa (4, 5); Spring Financial (6); Zolo (7); CMHC (8)