Neighbourhood guide · Toronto & the GTA
Downsizing Guide for Toronto & the GTA: A Step-by-Step Plan (2026)
How to downsize in Toronto and the GTA: when to move, condo vs bungalow, costs, tax, senior programs and a step-by-step plan from SRES® Irina Marchenkova.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Senior Real Estate Specialist (SRES®) · Last updated September 2026
Downsizing is about much more than moving to a smaller home. It’s a chance to free up money, reduce upkeep, move closer to family or healthcare, and design the next chapter of your life. It can also feel overwhelming: decades of memories, big financial decisions, and a lot to organize. As a Senior Real Estate Specialist (SRES®), I guide people through this every year. Here is the step-by-step approach I use with my clients across Toronto and the GTA.
Are you ready? Your options The money Step by step For families FAQ
Downsizing at a glance
- Start planning 6 to 12 months ahead: sorting belongings and preparing your home takes longer than most people expect.
- Decide your next home type first: condo, bungalow, townhouse, a suite near family, or a retirement residence.
- Know your numbers: sale proceeds, selling and moving costs, land transfer tax on your next purchase, and new monthly costs.
- Get the right team: a realtor experienced with downsizing, a real estate lawyer, and your financial advisor.
Is it time to downsize?
There’s no right age. Most of my clients decide to downsize when several of these are true:
- The house and garden take more time, energy or money to maintain than you’d like.
- Stairs, a large yard or snow clearing are becoming harder.
- Several bedrooms sit empty most of the year.
- You’d like to be closer to children, grandchildren or medical care.
- You want to unlock equity to travel, help family or strengthen your retirement.
- You’d like a lifestyle with less driving: walkable shops, transit and community.
Many clients tell me they wish they had moved a few years earlier, while they had the energy to enjoy the process and their new neighbourhood. — Irina
Your options: what could your next home look like?
| Option | Good for | Things to consider |
|---|---|---|
| Condo apartment | No exterior maintenance, elevators, security, amenities, often near transit | Monthly fees, building rules, reserve fund health |
| Bungalow | One-level living, a garden, no shared walls | Still some maintenance; bungalows are in high demand |
| Townhouse or condo townhouse | More space than an apartment, less upkeep than a house | Stairs in many models; check condo fees |
| Garden, laneway or basement suite near family | Being close to children and grandchildren | Family arrangements, legal and tax planning; City permits |
| Retirement residence | Meals, activities, support and care services | Monthly costs; visit several and compare what’s included |
| Staying and adapting your home | Staying in a neighbourhood you love | Renovation costs for accessibility; ongoing upkeep |
Not sure which areas suit you? See my guide to the best places to downsize in Toronto and the GTA, with condo prices and nearby hospitals.
The money: what to plan for
What you’ll receive and spend when you sell
- Sale proceeds: I’ll prepare a free home evaluation using recent sales of comparable homes near you.
- Selling costs: real estate commission, legal fees, any mortgage discharge fees, and preparing the home for sale (repairs, cleaning, staging).
- Tax: the sale of your principal residence is generally tax-free in Canada under the principal residence exemption, but you must report the sale on your tax return. Ask your accountant about your situation, especially if you owned more than one property.
What you’ll pay when you buy
- Land transfer tax: Ontario’s tax applies to every purchase, plus Toronto’s municipal tax if you buy in the City of Toronto. First-time buyer refunds don’t apply if you’ve owned a home before. Try the land transfer tax calculator.
- Legal fees, title insurance and moving costs.
- New monthly costs: condo fees, property tax, insurance and utilities. Compare these with what you pay today.
Programs that may help
- Ontario Senior Homeowners’ Property Tax Grant: up to $500 a year for eligible homeowners aged 64 or older with lower-to-moderate incomes, claimed on your tax return.
- Home Accessibility Tax Credit (federal): helps with the cost of eligible renovations that make a home safer and more accessible for people aged 65 or older, or with a disability.
- Multigenerational Home Renovation Tax Credit (federal): helps with the cost of creating a secondary unit so a senior or an adult with a disability can live with family.
Good to know: investing the proceeds from your sale can increase your taxable income, which may affect income-tested benefits such as the Guaranteed Income Supplement or Old Age Security. Speak with your financial advisor before you sell. I’m not a financial or tax advisor, and these programs’ rules can change, so always check the official government pages.
Downsizing step by step
- Talk it through. Discuss your goals, budget and timing with your family and advisors.
- Get a free home evaluation. Know what your home is likely to sell for, and what improvements are worth making.
- Choose your next home type and area. Visit buildings and neighbourhoods; check transit, shops and healthcare.
- Decide: sell first or buy first? Selling first gives certainty about your budget; buying first secures the right home but may need bridge financing. We’ll weigh both.
- Sort and declutter. Start with one room at a time. Decide what to keep, gift to family, donate, sell or recycle. Measure your new space before deciding on furniture.
- Prepare your home for sale. Small repairs, a deep clean and simple staging can make a big difference to your sale price.
- List, sell and negotiate. I’ll handle pricing, marketing, showings and negotiations, and coordinate your closing date with your purchase.
- Plan the move. Book movers early, arrange utilities, update your address with government services, and plan the first week in your new home.
- Settle in. Meet neighbours, explore local community centres and programs, and enjoy your freedom.
Helping a parent downsize
Many of my clients are adult children helping a parent move. A few things make it easier:
- Let your parent lead: it’s their home and their decision. Listen to their worries about the move and the memories.
- Get the paperwork in order early: an up-to-date will and powers of attorney for property and personal care, prepared with a lawyer.
- Share the work: assign family members to sorting, paperwork, repairs and the move.
- Consider the whole picture: health needs today and in the future, transportation, and social life.
- Communicate as a family: clear decisions about sale proceeds and belongings prevent misunderstandings later.
Why work with a Senior Real Estate Specialist (SRES®)?
The SRES® designation means I’ve completed specialized training in helping clients aged 50 and over buy, sell and downsize, including timing, financing options and family considerations. In practice, that means I plan the whole move with you, not just the sale: preparing and pricing your home, finding the right condo or bungalow, coordinating closing dates, and connecting you with trusted movers, organizers, stagers, lawyers and mortgage professionals. I’m patient, I explain every step, and I work in English and Russian.
Let’s plan your move together
Tell me a little about your home and your plans, and I’ll prepare a free home evaluation and a simple downsizing plan for you. There’s no obligation.
Downsizing FAQ
When should I start planning to downsize?
Ideally 6 to 12 months before you want to move. Sorting belongings, preparing your home and finding the right next home all take time, and starting early reduces stress.
Should I sell my house before buying a condo?
Selling first gives you certainty about your budget, while buying first secures the right home but may require bridge financing or carrying two properties. The best choice depends on the market and your finances; I help clients weigh both options.
Do I pay tax when I sell my home?
The sale of your principal residence is generally tax-free in Canada under the principal residence exemption, but you must report the sale on your tax return. Speak with your accountant, especially if you owned more than one property.
Is there help with property taxes for seniors in Ontario?
The Ontario Senior Homeowners’ Property Tax Grant provides up to $500 a year to eligible homeowners aged 64 or older with lower-to-moderate incomes. It’s claimed when you file your tax return.
What is an SRES®?
A Senior Real Estate Specialist is a realtor who has completed training in helping clients aged 50 and over with buying, selling and downsizing.
Related guides
- Best places to downsize in Toronto and the GTA
- Free home evaluation
- Land transfer tax calculator
- All neighbourhood guides
Compare neighbourhoods: Most affordable areas · Best for families · Best for downsizing · First-time buyer guide · All neighbourhood guides