Mortgage Blog

The Downsizing Myth: Why Seniors are Choosing to 'Stay and Play' in 2026

January 1, 2026 | Posted by: Sarita Free

For decades, the retirement 'playbook' in Norfolk County was simple: sell the big family home in Simcoe, buy a smaller bungalow or a condo in Port Dover, and pocket the difference for your retirement fund. But as we move through 2026, many local seniors are discovering a frustrating reality: Downsizing isn't the 'cash cow' it used to be. In fact, after you run the numbers, moving might actually leave you with less monthly cash than staying exactly where you are.

The Hidden Math of Moving in 2026

Let's look at a real-world scenario for a homeowner in Simcoe today. You sell your detached home for $650,000. You plan to buy a smaller, modern condo in Port Dover for $500,000. On paper, you have $150,000 in profit. But here is what happens to that 'profit' before it ever hits your bank account:

• Real Estate Commissions (Approx. 5%): $32,500 + HST

• Land Transfer Tax: ~$6,500

• Legal Fees & Moving Costs: ~$4,000

• The 'Condo Trap': While you lose the lawn maintenance, you gain a monthly condo fee. In 2026, many Port Dover developments see fees ranging from $450 to $700 per month.

Suddenly, your $150,000 profit is closer to $100,000, and your monthly 'cost of living' might actually be higher because of those condo fees.

The 2026 Alternative: 'Stay and Play'

This is why many homeowners in Waterford, Delhi, and Port Rowan are opting for a 'Stay-Put Strategy' using a Reverse Mortgage. Instead of moving, you can access up to 55% of your home's value tax-free. Here is why it’s becoming the preferred move in 2026:

• Zero Monthly Payments: Unlike a traditional mortgage or a HELOC, you aren't required to make monthly interest payments. This immediately frees up your pension income for travel and lifestyle.

• The Living Inheritance: Many Norfolk grandparents are using their equity to gift down payments to their grandkids now, helping them enter the market while they are still here to see the impact.

• Aging in Place: You can use a portion of the funds to modify your current home—installing walk-in showers or main-floor laundry—so you never have to move.

Is Staying Right for You?

The 'Stay and Play' strategy isn't about being 'stuck' in a big house; it's about financial control. You keep 100% ownership, you benefit from your home's future appreciation, and you stay in the community where your friends and doctors are located. Because a Reverse Mortgage is a major financial decision, specialized legal advice is a requirement. I always recommend Jamie Pereira at MHN Lawyers in Simcoe. He is an expert in Independent Legal Advice (ILA) and will ensure you and your heirs fully understand how the equity is protected.

Ready to see the 'Stay vs. Go' math for your property? Download my Norfolk Reverse Mortgage Blueprint or book a free introduction call to get a custom eligibility report based on your current home value.

Back to Main Blog Page