05/18/2026
Divorce after 55 is painful enough.
Then the math hits.
After the home sells, each walk away with $400,000 - to last a lifetime.
A modest home in Ontario costs $600,000.
A $200,000 shortfall — and qualifying for a traditional mortgage on CPP and OAS income of $1,500 a month is unlikely.
Many resort to renting.
A budget one-bedroom runs $1,800 to $2,000 a month.
PRO: Independence and peace of mind for 13 years.
CONS:
1. No room for visitors.
2. Rent costs will climb 2% every year. 3. No property to leave in the will. No equity to pass on.
4. After 13 years of renting, the $400,000 is gone.
There is an option many don’t realize.
Borrower can allocate their $400,000 as the down payment to purchase a $600,000 home.
A reverse mortgage to covers the remaining $200,000.
Homeowner moves into a $600,000 home with no monthly mortgage payment — paying only a municipal tax bill that is a fraction of what rent would cost, easily affordable with pension income.
Ten years from now, with projected 3% annual appreciation, their equity remaining is greater than $400,000 providing a nice legacy to leave for the family.
All possible by not paying rent.
They don’t have to downsize their life just because the marriage ended.
This conversation can change the lives for your clients.
I work with homeowners 55+ across Ontario. If you want to understand how this strategy can serve your clients — and your practice — I welcome that conversation.
