Yes I think it is possible having the mortgage out of the way-and depending what your wages are. It also depends how much you want to put out for vehicles. Food and gas costs have risen-although compared to England's prices I am told we still have a great deal here.
If you like skiing stay up this way. Closer to ski hills. Down London way it is flat-and a long drive to ski. We have beaches this way too within driving distance. Lake Huron beaches to the west, Georgian Bay to the North. Landscapes vary too. if you go towards the north-you get rugged Canadian shield, pines and lakes. To the west-farm fields, some rolling terrain, very pretty too.
I know Belwood Lake! ;-)
So you would probably be happy to live just outside the cities. Homes can be alittle pricier in these immediate towns-but lifestyle is worth it-and they keep their value. If you are willing to go farther afield homes get cheaper-but it depends on whether you want to commute-time/winter driving/gas costs. With gas costs rising steeply, you might want to put that commuting expense into a mortgage to be close to the city anyway(and less hassles). I also don't think you want alot of longer winter commutes to get use to either. It may be a shock. Make it easier for yourself, not harder-if you know what I mean.
Teaching. My mom was a teacher for 30 years. Apparently there have been layoffs recently I heard on the CBC radio-because of inadequate planning in Ontario. But she should contact the Schoolboards, teacher's federation and ask what demand there is in her field. usually teachers can find work. The nice thing is with that kind of work, she can work in some lovely smaller locales away from the TO area. LIke Owen Sound for example. Which is close to ski-hills. You have alot of options for small cities/large towns-and close neighbouring small towns around Ontario. Home prices will vary and lifesyle and geography. I would focus away from the cities along the 401 corridor. Fergus, Elmira, St. Jacobs-a few minutes outside Waterloo and from Guelph. Stratford is a pretty smaller town with lots of arts and stores. But there are many locations to check out. Get looking on a map and ask me if you have questions. We have public and private schoolboards for your wife to check out too. I think where she will find work is a big starting point for you. Just make sure its not in an expensive area where wages don't go as far.