Tips for Downsizing Your Home in the GTA

Downsizing is one of the biggest transitions you will make, emotionally, practically and financially. Whether you are an empty nester, newly retired or simply ready for less upkeep, moving to a smaller home in the Greater Toronto Area takes careful planning. This post shares the tips I give my own downsizing clients, along with the latest GTA market numbers so you can see what the move could mean for you.

What the GTA market looks like right now

According to the Toronto Regional Real Estate Board, GTA home sales in September 2026 were down 9% from a year earlier, new listings were down 14.4% and the average selling price was $1,006,409, down 5.1%. Homes took an average of 34 days to sell.

For downsizers, a softer market cuts both ways. You may sell for a little less than you would have a year ago, but you are also buying your next home in the same market. What matters most is the gap between the two prices, not either price on its own.

Source: TRREB Market Watch, September 2026, all TRREB areas. Prices in your neighbourhood will differ. In September, the average price across all home types was $1,365,169 in Oakville, $929,600 in Mississauga, $1,018,973 in Milton and $1,033,458 in Burlington. For current numbers, see my GTA real estate market trends page.

1. Start with your "why"

Before you look at a single listing, ask yourself what you want this move to give you. Your answer shapes every decision that follows.

• Less maintenance: no more lawns, snow, stairs or big repairs
• More financial freedom: unlock equity for retirement, travel or helping family
• Lower monthly costs: smaller utility bills, property taxes and upkeep
• A new lifestyle: walk to shops and transit, live closer to children and grandchildren, or lock the door and travel

2. Choose your next home, not just a smaller one

Many downsizers assume a condo is the only option. It is a great fit for many people, but it is not the only one.

• Condo apartments: the lowest maintenance and often the lowest price, with amenities and security. Budget for monthly condo fees and always review the status certificate before you commit.
• Bungalows: main-floor living with your own yard and garage. They are popular, so expect competition.
• Townhouses and semis: a middle ground with less space to maintain and more privacy than a condo.
• Adult lifestyle communities: homes designed for active adults, often with clubhouses and social programs.
• New construction: modern and move-in ready, but closing dates can be years away. Compare the trade-offs in my post on pre-construction vs. ready-to-move homes.

Think ahead ten years. Accessibility features like a main-floor bedroom, few stairs, wide doorways and an elevator can let you stay in your next home much longer. For a deeper comparison, read freehold vs. condo ownership.

3. Work out the full financial picture

Selling a larger home and buying a smaller one can free up a meaningful amount of money. Using the September averages above, the gap between an average GTA detached home and an average condo apartment is about $686,759 before costs. Your own numbers depend on your home, your neighbourhood and what you buy next.

Remember to budget for the costs of the move itself:

• Selling costs: real estate commission, legal fees and any mortgage discharge or penalty
• Buying costs: Ontario land transfer tax applies to your new home. On a $605,257 condo, that works out to about $8,580. The first-time buyer refund does not apply if you have owned a home before.
• Moving costs: movers, storage, staging and any repairs before you list
• Ongoing costs: condo fees, property taxes and insurance in your new home

Taxes on your sale. If the home you are selling has been your principal residence, the gain is usually tax-free under the principal residence exemption. You still need to report the sale on your income tax return for the year you sell. Your accountant can make sure it is done correctly.

What to do with the equity. Whether you invest it, help your children or keep it for retirement security, make that decision with a financial advisor before you sell, not after.

Curious what your home could sell for today? Request a free home valuation.

4. Know the programs for older homeowners

If you are 64 or older, two programs are worth knowing about, whether you are planning to move soon or staying put for now.

• Ontario Senior Homeowners' Property Tax Grant: eligible homeowners aged 64 and older can get up to $500 a year back on their property taxes, based on income. You claim it on the ON-BEN form with your income tax return.
• Halton Older Adults Property Tax Deferral: in Oakville, Milton, Burlington and Halton Hills, eligible homeowners aged 65 and older with a combined family income under $69,500 can defer their property taxes. The deferred amount is repaid when the home is sold, so it is important to factor it into your sale. Applications are due by September 30 each year.

Rules and income limits change each year, so check the official pages listed under Sources below, or ask your municipality's tax office.

5. Make room for the emotions

Leaving the home where you raised your family is hard, even when you know it is the right decision. Give yourself permission to feel sad about what you are leaving and excited about what comes next. A few things help:

• Start sorting early, one room at a time, so decisions do not pile up
• Offer family heirlooms to children and grandchildren before the move
• Take photos or a short video of the home before it changes
• Involve family in the big decisions, but keep the final say yours

6. Time your sale and purchase carefully

The biggest worry I hear from downsizers is, "Do I sell first or buy first?" There are three common approaches:

1. Sell first. You know exactly how much you have to spend, but you may need short-term housing if your new home is not ready.
2. Buy first. You secure the home you love, but you may need bridge financing and carry two homes for a short time. Talk to your lender before you make an offer.
3. Line up the closing dates. With a clear plan, we can often negotiate closing dates that let you move directly from one home to the next.

Spring and fall are traditionally the busiest seasons, but the right time to sell is when your home is ready and your next step is clear. With homes taking around a month to sell on average this September, building in extra time reduces stress.

Your downsizing checklist

1. Write down your top three reasons for moving
2. Get a current valuation of your home
3. Meet a financial advisor about how to use your equity
4. Decide which type of home and which neighbourhoods fit your next chapter
5. Start decluttering, one room at a time
6. Talk to your lender about timing and bridge financing
7. Prepare and list your home with a clear plan for your next move

For more support, visit my Senior Downsizing in Mississauga page.

Tarlika Sehgal, REALTOR®, SRS®, ABR® | eXp Realty Of Canada, Inc., Brokerage

Sources

• TRREB Market Watch, September 2026
• Ontario Senior Homeowners' Property Tax Grant, Government of Ontario
• Older Adults Property Tax Deferral, Halton Region
• Principal residence exemption and reporting a sale, TaxTips.ca

This article is general information, not legal, tax or financial advice. Market figures are averages and will differ by neighbourhood and property. Program rules and income limits change. Please confirm your situation with a real estate lawyer, accountant or financial advisor. Figures are current as of October 2026.