Downsizing in Toronto: A Complete Guide
Your comprehensive guide to selling your family home and finding the perfect next chapter. From empty nesters to retirees, make your transition smooth and financially rewarding.
1. Is Downsizing Right for You?
Downsizing—or "rightsizing" as many prefer to call it—is one of the most significant decisions you'll make in your later years. Beyond the financial benefits, it's about creating a lifestyle that suits this chapter of your life.
Signs It Might Be Time
- Rooms go unused: If bedrooms have become storage rooms and you live primarily on one floor
- Maintenance is overwhelming: Yard work, snow removal, and home repairs are becoming burdens
- Stairs are challenging: You're avoiding parts of your home due to mobility concerns
- Property taxes and utilities are high: Large homes cost more to maintain and heat/cool
- You want to unlock equity: Your retirement plans would benefit from the capital in your home
- Travel or hobbies call: Less home maintenance means more time for what you love
Important Note: The best time to downsize is when you're ready—not when you're forced to. Planning ahead gives you more options, better timing, and less stress during the transition.
2. Understanding the Numbers
Downsizing in Toronto can significantly improve your financial position, but it's essential to understand all the costs involved.
Sample Downsizing Scenario
| Current Home Sale Price | $1,800,000 |
| Less: Real Estate Commission (5%) | -$90,000 |
| Less: Legal Fees & Closing | -$3,000 |
| Net from Sale | $1,707,000 |
| New Condo Purchase | -$850,000 |
| Land Transfer Tax (Toronto) | -$28,000 |
| Legal & Moving Costs | -$8,000 |
| Equity Unlocked | $821,000 |
Ongoing Cost Comparison
4-Bedroom House (Monthly)
- Property Tax: $800
- Utilities: $400
- Maintenance Reserve: $500
- Landscaping/Snow: $150
- Total: ~$1,850/month
2-Bedroom Condo (Monthly)
- Maintenance Fees: $700
- Property Tax: $350
- Hydro (only utility): $80
- Insurance: $50
- Total: ~$1,180/month
3. Condo vs Bungalow vs Townhouse
Each housing type offers different lifestyle benefits. Consider your priorities carefully.
Condominium
Advantages
- • Zero maintenance responsibilities
- • Built-in security and concierge
- • Amenities (gym, pool, party room)
- • Lock-and-leave for travel
- • Often walkable locations
Considerations
- • Monthly fees ($500-$1,200+)
- • Rules and restrictions
- • No private outdoor space*
- • Potential special assessments
- • Elevator dependency
*Some condos offer terraces, and ground-floor units may have patios.
Bungalow
Advantages
- • Single-floor living (no stairs)
- • Private yard and garden
- • No monthly fees
- • Freedom to modify
- • Garage space
Considerations
- • Ongoing maintenance required
- • Higher utility costs
- • Snow/lawn care responsibility
- • Limited inventory in Toronto
- • Often in suburban areas
Townhouse
Advantages
- • More space than condos
- • Private entrance and small yard
- • Lower fees than condos
- • Multiple floors for guests
- • Often includes parking
Considerations
- • Usually has stairs
- • Shared walls with neighbours
- • Some maintenance required
- • May have condo rules
- • Limited locations
Pro Tip: Try Before You Buy
Consider renting a condo for a few months before committing. Many downsizers discover they love condo living—or realize they miss their garden more than expected. Short-term rentals can help you make a confident decision.
4. Best Toronto Areas for Downsizers
The right neighbourhood depends on your priorities: walkability, proximity to family, healthcare access, or familiar surroundings.
Yonge & Eglinton
Excellent transit, walkable, many medical offices, diverse condo options from $600K-$1.5M
Lawrence Park / Leaside
Village feel, close to Sunnybrook Hospital, newer developments near Bayview subway
The Beaches
Lakefront living, active lifestyle community, boutique condos on Queen East
High Park
Park access, established neighbourhood, good transit to downtown
Etobicoke Waterfront
Quieter pace, lake views, more affordable options, close to Humber Bay trails
Yorkville
Upscale urban living, world-class amenities, near Mt. Sinai Hospital
5. Preparing Your Home to Sell
After decades in your home, preparing it for sale requires a different approach than a typical listing. The goal is to help buyers see the potential while respecting your home's history.
Prioritized Preparation Checklist
High Impact
- • Fresh paint in neutral colours (biggest ROI)
- • Professional deep cleaning
- • Update light fixtures (especially kitchen/bath)
- • Refresh landscaping and curb appeal
- • Declutter and depersonalize
Consider Carefully
- • Kitchen updates (may not recoup full cost)
- • Bathroom refreshes (new fixtures, re-caulking)
- • Flooring repairs or refinishing
- • Minor repairs that suggest neglect
Often Not Worth It
- • Major renovations before selling
- • Adding features buyers may not want
- • Over-improving for the neighbourhood
6. Managing the Emotional Side
Leaving a home where you raised your family, celebrated milestones, and built a life is emotionally challenging. Acknowledging these feelings is essential to a healthy transition.
Common Feelings & How to Handle Them
- Grief: It's normal to mourn this chapter of life. Allow yourself time to feel sad while also looking forward.
- Overwhelm: Break the process into small, manageable tasks. You don't need to do everything at once.
- Guilt: You're not abandoning your memories—they go with you. Consider photographing special spaces.
- Excitement: Embrace the positives! Less work, more freedom, new adventures.
Involving Family
If appropriate, involve adult children in the process. They may want certain items, can help with decisions, and sharing the journey can make it easier for everyone. However, set clear boundaries—ultimately, this is your decision.
7. The Decluttering Process
After 20, 30, or 40+ years in a home, decluttering is often the biggest challenge of downsizing. Start early and take it one room at a time.
The Four-Box Method
Keep
Items you use, need, or truly love
Gift/Donate
Items with value that others can use
Sell
Valuable items worth the effort to sell
Discard
Items past their useful life
Professional Help Available
- Senior Move Managers: Specialists who coordinate the entire downsizing process
- Professional Organizers: Help sort and make decisions
- Estate Sale Companies: Handle selling items from your home
- Junk Removal Services: Remove and responsibly dispose of items
8. Making the Move Smooth
A well-planned move reduces stress significantly. Consider these strategies for a smoother transition.
Timeline Recommendations
Consider Bridge Financing or a Short-Term Rental
Trying to coordinate selling and buying on the same day is stressful. Many downsizers benefit from selling first, storing belongings, and taking time to find the perfect new home without pressure.
9. Frequently Asked Questions
When is the best time to downsize in Toronto?
The best time to downsize is typically spring (April-June) when the market is most active and your current home will show well. However, personal factors matter more—consider downsizing when you're ready emotionally, financially prepared, and ideally before you need to due to health or mobility issues. Planning 1-2 years ahead gives you the best options.
Should I downsize to a condo or a smaller house?
This depends on your lifestyle preferences. Condos offer maintenance-free living, amenities, and security but come with monthly fees and rules. Bungalows provide privacy, outdoor space, and no fees but require ongoing maintenance. Consider your budget, health needs, desired lifestyle, and whether you want to avoid stairs entirely.
How much can I expect to pocket from downsizing in Toronto?
The equity you'll unlock depends on your current home's value versus your new home plus costs. A typical Toronto family home ($1.5-2M) to a condo ($600K-900K) could yield $600K-$1M after selling costs, land transfer tax, and moving expenses. Factor in condo fees, which can be $400-1000+ monthly.
What are the hidden costs of downsizing?
Hidden costs include real estate commissions (typically 5%), legal fees ($2,000-3,000), moving costs ($2,000-5,000), decluttering and disposal ($500-3,000), land transfer tax on your new home, potential capital gains tax if not your principal residence, and costs to downsize furniture and belongings.
Can I downsize and stay in my neighbourhood?
Often yes, especially in established Toronto neighbourhoods that have condo developments. Areas like Yonge & Eglinton, Lawrence Park, and many others have newer condos close to family homes. Your neighbourhood knowledge and connections are valuable—many downsizers stay within a few blocks of their old home.
What should I do with all my stuff when downsizing?
Start decluttering 6-12 months before moving. Options include: gifting heirlooms to family, selling valuable items (estate sales, consignment), donating to charity for tax receipts, recycling responsibly, and using temporary storage while you decide. Professional organizers and estate liquidators can help manage the process.
Ready to Start Your Downsizing Journey?
We specialize in helping empty nesters and retirees navigate this important transition. Get personalized guidance for selling your family home and finding your perfect next chapter.
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