This B.C. couple wants to carry a monster mortgage into retirement

financialpost.com:

At ages 57 and 52, Leo* and Siobahn would like to semi-retire when they each turn 60, but they will be carrying a significant mortgage well into retirement – something to be avoided at all costs, according to many of the financial planning guides Leo has read. Is this really such a bad thing — especially since their $2.6 million forever B.C. home has a separate, two-bedroom income-generating suite?

“We bought the house six years ago,” said Leo. “It was far more expensive than we ever wanted to spend, but with the monthly rental income of $2,400 we thought we could manage a much higher mortgage.” They have no desire to downsize and sell once they retire.

The mortgage is currently $730,000 at 2.51 per cent for another 18 months. They’ve been paying it off aggressively, making $4,723 monthly payments, but wonder if they can and should decrease their payments significantly so that their rental income covers the mortgage when they renew. They also wonder if they should apply for the province of B.C.’s property tax deferment program, which would see the Ministry of Finance pay the property taxes to the municipality until the homeowners sell, at which point that money plus interest must be paid back.

Leo started IT consulting after being laid off in the spring and his projected income this year is $100,000 before tax. He also received about $200,000 in company stock, which he’s not sure what to do with. Siobahn earns $220,000 before tax and she and Leo split the rental income equally. Siobahn also has a defined benefit pension plan that will pay $4,300 a month at age 60 and $5,800 a month at 65. If they do retire at 60, they each plan to continue working part-time until age 65.
In addition to their primary home, Leo and Siobahn