Posted On Sep 19, 2025

For fifteen years, my life was a cycle of 6 a.m. practices, weekend-long tournaments, and the unmistakable smell of a hockey bag in the garage (or the back seat!). My wife and I, like so many parents across the GTA, poured an incredible amount of time, energy, and yes, money, into our son's rep hockey (and baseball) careers. It was a journey we wouldn't trade for anything.

This month, we dropped him off at university.

After the emotional goodbyes, we came home to a house that was suddenly, profoundly quiet. And as we sat down to look at our budget for the first time without hockey or baseball on it, we were hit with a second, less emotional shock: a significant financial surplus.

The thousands of dollars per year for registration, equipment, travel, and team fees were just… gone. We’d started saving for his education in an RESP from day one, so those costs were planned for. This was different. This was newfound monthly cash flow.

We’ve started calling it our "Empty Nest Dividend." It's a common experience for parents whose kids were in high-level sports, dance, or other expensive activities. And it presents a massive opportunity. The question is, what’s the smartest thing to do with it?

As a Mortgage Agent, my mind immediately goes to the single biggest asset and liability we have: our home. Here are the three options we're considering, and they might apply to you, too.

 

Option 1: The "Mortgage Freedom" Play

The most straightforward strategy is to take that extra cash flow and apply it directly to our mortgage principal. It's amazing how quickly a few hundred extra dollars a month can accelerate our mortgage payoff.

Most mortgages have prepayment privileges allowing you to increase your regular payment (often by up to 100%) and/or make an annual lump-sum payment. By redirecting our old "hockey and baseball fund" here, we could shave 5-7 years off our mortgage and save tens of thousands of dollars in interest. The appeal of being completely debt-free before retirement is powerful.

Option 2: The "Next Generation" Play

Our son is off building his future, and we know how incredibly difficult the path to homeownership is in Toronto. Another compelling option is to take this dividend and invest it specifically for him.

Instead of paying down our own low-rate mortgage faster, we could open a separate investment account. By the time he graduates and starts his career, that fund could have grown into a significant nest egg to help him with a down payment on his own first home. This is a long-term play that invests in the next generation’s financial stability.

Option 3: The "Strategic Refinance" Play

This is the most "active" strategy. While  home values have fallen off from their peaks of just a couple of years ago, our property has appreciated significantly over the 20+ years we have owned it and diligently made our mortgage payments - so we could do a small mortgage refinance (and equity take-out). The goal wouldn't be to spend the money, but to pull out a portion of our equity at today's rates and reinvest it for a potentially higher return.

This requires a higher risk tolerance and isn't for everyone. It involves speaking with a financial planner and having a clear investment strategy. However, for those comfortable with the approach, using your home's equity to build your retirement nest egg can be a powerful wealth-building tool, especially when you have a new source of cash flow to comfortably service the larger loan.

What’s Right for Us? And for You?

 

We haven't decided yet. Each path has its merits, and the choice is deeply personal. It depends on your risk tolerance, your long-term goals, and what brings you the most peace of mind.

What's certain is that this life transition, while emotional, is also a financial turning point. It's a chance to reassess, re-prioritize, and make a strategic move that can dramatically improve your financial future.

If you're finding yourself with your own "Empty Nest Dividend," let's talk about it. Sometimes the best financial moves are born from life's biggest changes.

Let's connect!

Ready to discuss your home ownership goals and a Better Mortgage by Dom?

 

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