{"id":315331,"date":"2026-03-30T09:25:05","date_gmt":"2026-03-30T13:25:05","guid":{"rendered":"https:\/\/wahi.com\/ca\/en\/?p=315331"},"modified":"2026-03-30T09:25:07","modified_gmt":"2026-03-30T13:25:07","slug":"read-this-before-you-decide-to-downsize","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/buy\/what-you-need-to-know-about-downsizing\/","title":{"rendered":"Read This Before You Decide to Downsize"},"content":{"rendered":"

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The true cost of downsizing may be a lot higher than expected. Wahi speaks to a seasoned personal-finance pro to learn how downsizers can prepare. <\/span><\/p>\n

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By Josh Sherman<\/a>\u00a0<\/span>| 4 minute read<\/p>\n

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<\/span><\/p>\n

Downsizing is a popular way for Canadians to fund their retirements, but many are disappointed by the actual amount of money that\u2019s leftover after all the costs associated with a move are added up, suggests a personal-finance expert.<\/span>
<\/span>
<\/span>\u201cUnless you are moving from an expensive location to a cheap one, you might not net very much from downsizing,\u201d says Anita Bruinsma, founder of Clarity Personal Finance.\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Part of the trouble is the narrowing gap between detached home prices and condo prices, as well as rising property values in markets that are popular for big-city downsizers, such as Atlantic Canada or small towns and cities outside of the Greater Toronto Area. Another issue to contend with, says Bruinsma, are the many costs associated with downsizing.\u00a0<\/span><\/p>\n


Some 41% of respondents to a 2022 survey from HomeEquity Bank<\/a> say they weren\u2019t aware of the true costs related to downsizing.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The Hidden Cost of Downsizing\u00a0<\/b><\/h2>\n

<\/span><\/p>\n

Hidden or often-overlooked downsizing costs include renovations your new property may require, particularly if you\u2019re moving into another ground-oriented home, such as a townhouse or semi. <\/span>
<\/span>
<\/span>\u201cOne item people forget about when moving is the work they will want to do on the new home,\u201d says Bruinsma. \u201cPainting, yes, but also things like upgrading a bathroom, replacing kitchen cabinets, installing new floors, building a new deck \u2014 things that the prior owner didn\u2019t get around to doing or didn\u2019t want to do,\u201d says Bruinsma.<\/span>
<\/span>
<\/span>There are also sometimes surprise costs. Perhaps the roof springs a leak, or the furnace needs replacing sooner than expected. \u201cThere has to be a contingency fund for this,\u201d she says.<\/span>
<\/span>
<\/span>For homebuyers in Toronto, there are two separate land-transfer taxes (municipal and provincial) to fork over, though in most markets only the provincial levy applies. <\/span>
<\/span>
<\/span>\u201cYou also have to get your current home ready to sell,\u201d says Bruinsma. \u201cIf you have only ever bought a place and never sold one, you might be surprised when your real estate agent recommends doing some touch-ups or repairs before you list it. This can also add up.\u201d<\/span><\/p>\n

 <\/p>\n

In all, there are potentially dozens of costs associated with downsizing. Here are some of the main ones, according to Bruinsma:<\/span>
<\/span>
<\/span>\u2022<\/span> Land transfer tax(s)<\/span><\/p>\n