Residential
Downsizing your home
Moving from a family house to something smaller is a big change. A clear plan for the sale, the purchase and the move takes a lot of the stress out of it. Decide early whether to sell or buy first.
Residential real estate
What downsizing your home involves
A plain explainer if you’re new to this.
- What it is
Moving to a smaller home
You sell a larger home and buy or rent something smaller.
- How it works
Sell and buy in order
You can sell first, buy first, or line up both dates. Each option has different risk.
- Costs and tax
Fees, taxes and the principal residence
Budget for commissions, legal fees and property transfer tax on the next home. The principal residence exemption usually covers the gain on your home. See CRA’s capital gains guide.
- What I check
Timing and fit
I help match the dates and check the new home, including strata documents if it’s a strata.
General information, not tax or legal advice. Rules and rates change, and every situation is different. Talk to your lawyer and accountant before you act on anything here.
Start with the next place
Work out what you want next: area, size, stairs or an elevator, parking, outdoor space, and how close to family, shops and transit. That sets the budget and the timing.
Sell first or buy first
- Sell first and you know your budget, but you may need somewhere to stay in between.
- Buy first and you know where you’re going, but you may carry two homes for a while.
- Line up both dates, so you complete the sale and the purchase close together.
Strata living
Many downsizers move to a condo or townhouse. Read the strata documents closely, check the age and condition of the building, and look at the bylaws for pets and renovations. The strata documents checklist helps.
Family and paperwork
Talk to your accountant about the tax side, especially if the house wasn’t always your principal residence, and to your lawyer about wills and title.
Questions people ask
Should I sell before I buy?
It depends on your finances and the market. Many people line up both dates so they move once.
Is a condo a good choice for downsizing?
For many people, yes. Check the building’s condition, fees and bylaws first.
Do I pay tax when I sell my family home?
Usually not if it was always your principal residence, but there are exceptions. Ask your accountant.
What should I gather, ask and watch for?
Documents to gather
- Title and mortgage statement
- A list of what you need in the next home
- Your budget and timing
- Strata documents for places you like
Questions to ask
- Sell first or buy first?
- What are the strata rules on pets, rentals and ages?
- What will the move cost all in?
- Any tax to think about? (ask your accountant)
Common mistakes
- Buying before you know what your home will sell for
- Underestimating how long sorting belongings takes
- Not reading the strata bylaws
- Forgetting PTT on the new place
Typical timeline
- Months 1 to 3Plan, sort, decide on order
- SaleWeeks to months
- PurchaseSubjects then completion
- MoveLine up the dates if you can
Typical ranges. Your lease, lender and the City set the real dates.
Go deeper
If you’re looking for more details
Order of steps that works for most people
- Know what your home is likely worth
- Decide what you want next and where
- Decide whether to buy first or sell first
- Sort belongings early
- Plan the move date around both deals
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Next step
Thinking about downsizing?
Let’s plan the sale and the next place together.