Getting a Mortgage at 60 or 70 in BC: A Downsizer's Guide

Yes, you can get a mortgage in your 60s, 70s, or even 80s in British Columbia. There is no maximum age for a mortgage in Canada, and many downsizers in Greater Victoria finance their next home after selling the family house. This guide explains how it works, what lenders actually look at, and the honest options when a traditional mortgage is not the right fit.

The most common question I hear from Victoria and Saanich homeowners who are ready to move into a condo or townhome is a nervous one: "Will anyone lend to me at my age?" The reassurance is that lenders underwrite your income and your ability to carry the payment, not your birthday. What changes in retirement is not whether you can borrow, but how your income is proven and which products fit best.

There is no maximum age for a mortgage in Canada

Age is a protected ground under the Canadian Human Rights Act, so a lender cannot turn you down simply because you are 68 or 75. Instead, a lender qualifies you the same way it qualifies anyone: income, credit, debt ratios, and the ability to carry the payment under the rules in place at the time. That said, individual lenders do set their own policies, and some plan their terms so the loan is repaid within a certain window of your age, commonly by your mid-80s or 90s. Policies differ from lender to lender, which is exactly why working with a good mortgage broker matters when you are over 60.

How lenders qualify retirement income

In retirement, your "paycheque" comes from several places, and lenders can count most of them, provided they are predictable and documented. The income lenders typically recognize includes:

• Canada Pension Plan (CPP) and Old Age Security (OAS) payments, including the Guaranteed Income Supplement.
• Workplace pensions, such as a BC public service, military, or private company pension.
• Scheduled, consistent RRIF withdrawals. If you draw a regular monthly or annual amount from your registered retirement income fund, most lenders count it as income. The key word is consistent.
• Investment income, including interest, dividends, and capital gains that follow a regular pattern.
• Rental income from a suite or investment property, using the lender's rental guidelines.

One common surprise: money you take out of a TFSA is usually not counted as income, because lenders treat it as your own capital coming back to you rather than recurring income. If you are planning to rely on TFSA withdrawals to qualify, talk to a mortgage professional early, because the strategy will need to be built differently.

The stress test still applies, even in retirement

Retired borrowers are tested the same way employed borrowers are. Canadian lenders qualify you on a stress-test rate, typically the greater of your contract rate plus two percentage points or the minimum qualifying rate set by the Office of the Superintendent of Financial Institutions (OSFI). The current number changes from time to time, so confirm it with your lender or broker when you are comparing options.

In practice, this means the payment you actually make and the payment you must qualify to carry are different numbers. A good broker calculates both for you before you even look at condos, so you shop with a number you can rely on.

Down payment, insured versus uninsured, and amortization

Here the downsizer has a real advantage: the equity from your home sale. Because most downsizers put down 20 percent or more, their new mortgage falls into the uninsured category. That means no mortgage default insurance premium, a 30-year amortization is generally available, and some lenders offer longer terms in specific cases.

If a buyer puts down less than 20 percent, the mortgage must be insured through CMHC or a private insurer. For insured mortgages, the amortization cap has traditionally been 25 years, extended to 30 in recent years for first-time buyers and purchasers of newly constructed homes, with the insured price limit raised to $1.5 million. Most downsizers, however, will be uninsured, which gives you more flexibility on both amortization and lender choice.

A longer amortization means a lower monthly payment, which is worth thinking about if you want to preserve monthly cash flow in retirement. The trade-off is more interest paid over the life of the loan. There is no single right answer; there is only the answer that fits your cash flow, your income plan, and your comfort with debt.

Common questions at 60, 70, and beyond

What if I am 75 or 80?

You can still qualify, but the pool of lenders narrows and some will want a shorter amortization or a plan for the loan to be repaid by an age they are comfortable with, often 85 or 95 depending on the lender. A broker who regularly works with older borrowers knows which lenders have the friendliest policies, so start there rather than applying bank by bank yourself.

How much can I borrow?

The amount depends on your documented income, your debt load, the stress-test rate, and the property's price. There is no fixed rule that retirees can only borrow a small amount. Many couples in Greater Victoria qualify for well over a million dollars when CPP, OAS, pensions, and RRIF income are combined.

Should I port my existing mortgage?

If you still have a mortgage on your current home, porting it to your new property can avoid prepayment penalties and keep your current rate. Porting has details worth understanding before you commit, so read our guide to porting your mortgage when downsizing and ask your lender for a port calculator before listing.

Co-borrowing with an adult child

If your retirement income does not stretch to the mortgage you need, a common and legitimate solution is to add a co-borrower, often an adult child, to the mortgage and the title. The lender combines both incomes, credit, and debt to qualify the loan. It works well for many families, and it is a serious commitment that deserves a real conversation:

• The co-borrower is fully responsible for the debt and is named on title, which affects their own ability to borrow for a home later.
• Talk about what happens if the parent's health changes, or if either of you wants to sell or refinance down the road.
• Plan the exit: how and when the child's name is removed, and the tax and legal implications of doing so, usually with independent legal advice for both of you.
• Never let a good relationship carry a financial arrangement nobody fully discussed. Write the plan down.

Alternatives when a traditional mortgage does not fit

Not every downsizer wants, or can qualify for, a conventional mortgage. The alternatives are genuinely worth knowing about:

• Buying with cash. If the sale of your family home covers the next purchase, paying cash removes payments, stress tests, and interest entirely. You lose the option of investing the difference, so compare what the money could earn against what the mortgage costs.
• A reverse mortgage. Available to homeowners 55 and older, a reverse mortgage lets you access equity without monthly payments; the loan is repaid when you sell. It is a different product with different costs, and it can be a good fit when income is low and equity is high. Our guide to home equity options for BC seniors walks through how it compares to a HELOC and a conventional mortgage.
• Renting first. Selling your home and renting for a season keeps your purchase flexible, gives you time to test a neighbourhood, and removes the pressure to line up two closings. It also lets you invest your equity conservatively while you decide. See renting before buying for the full picture.
• More equity from the sale. Sometimes the simplest fix is to reduce the amount you need to borrow by choosing a home that is somewhat smaller or slightly less central. In markets across Greater Victoria, from Sidney to Langford, the price difference between a two-bedroom and a one-bedroom is often exactly the amount that removes the financing problem.

The practical steps, in order

1. Gather your documents. Pension statements, recent CPP and OAS statements, two years of tax notices of assessment, RRIF statements with withdrawal history, and investment statements. Lenders move fast with complete files.
2. Get a pre-approval before you shop. It gives you a firm number, protects your rate for a window of time, and makes your offer stronger when you find the right condo.
3. Talk to a mortgage broker who serves retirees. Brokers see many lenders at once and know which ones welcome older borrowers. This is the single highest-leverage step.
4. Coordinate the sale and purchase. Understand your payout on the current mortgage, including any prepayment penalties, and plan your closing dates so the equity is available when you need it. A mortgage broker, your REALTOR, and your lawyer normally work together on this sequencing.
5. Be honest about total costs. A mortgage payment is only part of the monthly picture. Add strata fees, property tax, insurance, and maintenance when you compare a condo to your house. Our true-cost comparison and the downsizing budget guide help with the math.

How retirement income settings fit in

Whether you take RRIF withdrawals, when you start CPP, and how your investments are structured all affect both your mortgage qualification and your long-term income. If you are close to a decision, it is wise to review your retirement income plan alongside the mortgage math so the two work together rather than against each other. And because a mortgage payment commits part of your income for years, your plan should be comfortable at the current rate and at the stress-test rate, because rates move.

This guide is general information, not financial or legal advice for your situation. Your bank, a licensed mortgage professional, and a qualified financial advisor can give you the numbers that apply to you.

Frequently asked questions

Can I get a mortgage at 70 or 75 in BC?

Yes. There is no legal maximum age for a mortgage in Canada, and lenders cannot refuse on the basis of age alone. Some lenders may limit the amortization so the loan is repaid by a certain age, commonly mid-80s to mid-90s depending on the lender, so a broker who serves retirees is the best first call.

Does CPP or OAS count as income for a mortgage?

Yes. CPP, OAS, Guaranteed Income Supplement, workplace pensions, consistent RRIF withdrawals, investment income, and rental income all count when they are documented and predictable. TFSA withdrawals are typically not counted as income, because lenders see them as your own capital returning to you.

How much down payment do I need as a downsizer?

In Canada, a down payment of at least 20 percent avoids mortgage default insurance. Most downsizers put down far more than that from the sale of their family home, which puts them in the uninsured category with more lender choice and no insurance premium. If you put down less than 20 percent, insured mortgage rules and limits, including the amortization cap, apply.

Should my adult child co-sign my mortgage?

Co-borrowing can help you qualify, but it is a real commitment for your child: they share responsibility for the debt and are on title, which affects their own future borrowing. Discuss the exit plan, get independent legal advice for both of you, and put the arrangement in writing before you proceed.

What is better at my age: a mortgage, a reverse mortgage, or paying cash?

It depends on your income, your comfort with debt, and what the money could otherwise do for you. Paying cash eliminates payments but ties up equity. A reverse mortgage on a home you eventually sell interests some seniors. A conventional mortgage keeps your equity invested but commits to monthly payments. Compare the numbers with a financial planner and a mortgage broker before deciding.