Avoiding a forced sale of investments in a downturn
Sequence-of-returns risk, addressed with a measured amount of equity.
The person
- A retiree with a solid portfolio and a $60,000 need
- Markets are down; selling now locks in the loss
The problem
The timing of a withdrawal in early retirement can matter almost as much as the investments themselves.
Use a limited amount of home equity as temporary liquidity, giving the portfolio room to recover.
A measured use of home equity may provide liquidity without forcing a sale during a downturn.
The numbers we'd put in front of you
- Reverse-mortgage rate against expected portfolio return
- Taxes triggered by selling investments
- Prepayment options for repaying once markets recover
- Time horizon and portfolio fees
Strong fit when
- Short intended borrowing window with a repayment plan
- Coordinated with a licensed planner
Weak fit when
- No realistic plan to repay
- A permanent income shortfall dressed up as a temporary one
The honest caveat
This is a planning strategy, not an advertisement. It belongs in a conversation that includes your financial planner and tax adviser.
Before you assume this is the answer
If you fit this situation — or any of the others in the library — a reverse mortgage is one option, not the option. Because Tyler is licensed as both a mortgage broker (MB611612) and a realtor through Engel & Völkers, we'll also model what selling and rightsizing would leave you with, so you can see every available route and choose the one that makes the most sense to you. Run both below.
Model this: Avoiding a forced sale of investments in a downturn
Because Tyler is licensed as both a mortgage broker and a realtor, we can show you the borrow-and-stay path and the sell-and-rightsize path on the same screen — including the selling costs, property transfer tax and moving costs most reverse-mortgage calculators quietly leave out.
Reverse mortgage
Illustrated at 7.99% — CHIP Max 5-year fixed, effective July 3, 2026. Semi-annual compounding, not in advance.
Downsize
Friction cost of moving: $106,600 in costs you never get back — plus the neighbourhood, the doctors and the stairs you already know.
Reading this honestly
On these assumptions, staying and borrowing leaves roughly $73,927 more after 10 years, largely because a larger home keeps appreciating and the move costs are gone forever. That gap shrinks fast if the market flattens. Change the appreciation rate and the replacement price — the answer moves, and knowing which way it moves is the whole point.
Educational estimate only — not a pre-approval, not an offer of credit, and not a market valuation. Reverse mortgage rates, qualifying amounts and terms are confirmed only through a full application, appraisal and independent legal advice. Downsizing figures use typical South Surrey / White Rock selling costs and current BC property transfer tax rates.
Educational information only. Not a pre-approval and not advice about your specific circumstances. Amounts, rates and eligibility are confirmed only through a full application, appraisal and independent legal advice.
If you fit one of these buckets, you deserve to see every option — not just the one that pays us.
Tyler Waldron is licensed as both a mortgage broker (MB611612) and a realtor through Engel & Völkers. So alongside any reverse mortgage scenario, we'll also model what selling and rightsizing would actually leave you with — selling costs, property transfer tax, moving costs and all. Same advisor, both sides of the math, and no pressure to pick either one.