# What does downsizing in Toronto really cost? | TorontoReverseMortgage.ca

> Downsizing in Toronto from a $1.3M house to a $900K condo costs about $91,000 to $110,000 in commission, taxes and fees. Free estimate, no sales pressure.

URL: https://torontoreversemortgage.ca/guide/downsizing-in-toronto-cost/

Decision Guide

# What does downsizing in Toronto really cost?

Selling a Toronto house and buying a condo comes with a large one-time bill, partly because Toronto buyers pay land transfer tax twice. Here is that bill on one example, beside the cost of staying and borrowing instead.

Updated October 31, 2026 · 6 minute read · Published by Dominion Lending Centres Homestead Financial

The short answer

Downsizing in Toronto from a $1,300,000 house to a $900,000 condo costs about $91,000 to $110,000 in one-time costs. The bill covers the real estate commission and its HST, Ontario's and Toronto's land transfer taxes, two sets of legal fees and the movers. Repairs, staging and monthly condo fees come on top.

[See what your own Toronto home could provide](/estimate/): a free estimate, no sales pressure.

On this page

1.  [What does it cost to sell a Toronto house and buy a condo?](#what-does-it-cost-to-sell-a-toronto-house-and-buy-a-condo)
2.  [How much money does downsizing leave you?](#how-much-money-does-downsizing-leave-you)
3.  [What would staying and borrowing the same money cost?](#what-would-staying-and-borrowing-the-same-money-cost)
4.  [When is downsizing the better fit?](#when-is-downsizing-the-better-fit)
5.  [When is staying the better fit?](#when-is-staying-the-better-fit)

[TorontoReverseMortgage.ca](/) adds up what downsizing in Toronto costs a homeowner who sells a house and buys a condo in the city, using 2026 tax rules and published price ranges.

Most homeowners weighing a smaller place want to know how much money the move will leave them. The challenge is not usually the sale price. It is the one-time costs, including a second land transfer tax charged by the City of Toronto.

This page shows the full bill on one example, what the move leaves in hand, what staying and borrowing would cost, and when each choice fits.

## What does it cost to sell a Toronto house and buy a condo?

Selling a $1,300,000 Toronto house and buying a $900,000 condo costs about $91,000 at the low end and about $110,000 at the high end. The biggest items are the real estate commission with its HST, at $58,760 to $73,450, and the two land transfer taxes, at $28,950 together.

| Cost | Low end | High end |
| --- | --- | --- |
| Commission of 4% to 5%, plus 13% HST | $58,760 | $73,450 |
| Seller’s lawyer, plus HST | $904 | $1,695 |
| Ontario land transfer tax | $14,475 | $14,475 |
| Toronto land transfer tax | $14,475 | $14,475 |
| Buyer’s lawyer, plus HST | $1,130 | $2,260 |
| Movers, 3-bedroom house, before HST | $1,700 | $3,400 |
| Total | $91,444 | $109,755 |

Commission, legal and moving figures are ranges from companies that sell those services, not official rates. Commission is negotiable: Ontario’s real estate regulator says no government, board or RECO fixes it ([RECO](https://www.reco.on.ca/consumers/things-you-need-to-know/signing-a-contract-with-a-real-estate-brokerage)), and 4% to 5% plus HST is the range real estate companies quote for the GTA in 2026.

A law firm’s published fees are $800 to $1,500 for a sale and $1,000 to $2,000 for a purchase, before HST and disbursements, the lawyer’s out-of-pocket charges ([Insight Law Firm](https://insightlawfirm.ca/real-estate-lawyer-fees/)). Moving-price guides put a 3-bedroom house at $1,700 to $3,400 before HST ([HomeStars](https://www.homestars.com/moving/price-guides/moving-cost-toronto)).

The total leaves out disbursements, staging and repairs, any charge for paying off a mortgage early, the condo’s status certificate (its report on the building’s finances) and monthly condo fees.

### Why Toronto buyers pay land transfer tax twice

Toronto buyers pay Ontario’s land transfer tax plus the City’s own, which uses the same brackets up to $2,000,000. On a $900,000 condo, each tax comes to 2% of the price minus $3,525: $18,000 minus $3,525 is $14,475, or $28,950 for both ([Ontario](https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax); [City of Toronto](https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rates-and-fees/)).

Toronto’s new rates from April 1, 2026 apply only above $3,000,000, on homes with one or two single-family residences: from 4.40% up to 8.60% above $20,000,000. A $900,000 condo is not affected.

## How much money does downsizing leave you?

On this example, the move leaves $308,556 in hand at the low end and $290,245 at the high end. The one-time costs take about 7% to 8.4% of the $1,300,000 sale price before any of the $400,000 price difference is yours.

-   Sale price: $1,300,000
-   Condo price: minus $900,000
-   One-time costs, low end: minus $91,444
-   Left in hand: $308,556

## What would staying and borrowing the same money cost?

Staying and borrowing the same $308,556 with a reverse mortgage costs interest, not moving costs. At five-year fixed rates of 6.23% to 6.49%, advertised by the lenders and checked October 31, 2026, the interest comes to about $110,800 to $116,100 after five years. One-time costs add about $2,000 to $3,500.

Interest is added to the balance twice a year. At 6.23%, each half-year adds 3.115%: $308,556 × 1.03115 × 1.03115 = $328,078, so $19,522 of interest in year one.

| Interest on $308,556 | At 6.23% | At 6.49% |
| --- | --- | --- |
| 1 year | $19,522 | $20,350 |
| 3 years | $62,351 | $65,166 |
| 5 years | $110,771 | $116,087 |
| 10 years | $261,308 | $275,850 |

The 10-year line assumes the rate stays the same after the five-year term ends, which it may not. On these numbers, the interest passes the $91,444 low-end moving cost after about four years.

There are no required monthly mortgage payments, but the house’s property taxes, insurance and upkeep stay yours. Interest adds to the balance, but home price growth often offsets some or all of it: on average, Canadian borrowers keep about half their equity. [What a reverse mortgage costs in Toronto](/guide/reverse-mortgage-cost-toronto/) lists each fee.

### Moving costs are paid now; interest is paid later

Everyone who has watched grocery prices knows it: a dollar buys a little less every year. Moving costs are paid when the sale and the purchase close. Reverse mortgage interest is paid later, when the home is sold or the mortgage becomes due.

Paying $91,444 four years from now is like paying about $81,000 today, if prices rise about 3% a year. Counted that way, the interest passes the moving costs a little later, between about four and five years.

## When is downsizing the better fit?

Downsizing fits when the house itself has become the problem: more rooms than you need, stairs that are getting harder, or a long way from family. Downsizing also fits when you want cash with no loan at all, or expect to move within a few years anyway.

-   **More house than you need.** Cleaning, heating and repairing empty rooms costs money and energy every year.
-   **Stairs are getting harder.** A condo with an elevator can make daily life easier.
-   **Family is far away.** Living near children or grandchildren can matter more than any cost comparison.
-   **A move is coming anyway.** A reverse mortgage repaid in its first years comes with an early repayment charge.

## When is staying the better fit?

Staying fits when the home still suits you, or can be adapted, and you need only part of the money a move would free up. Interest builds only on the money you take, so a smaller amount builds far less interest than the full $308,556.

-   **You need less than a move frees up.** At 6.23% to 6.49%, $100,000 builds about $35,900 to $37,600 of interest over five years, well under the $91,444 low-end cost of moving.
-   **The house can be adapted.** Grab bars or a main-floor bedroom can make a house easier to live in; [aging-in-place renovations in Toronto](/aging-in-place-renovations-toronto/) covers paying for them.
-   **The neighbourhood matters.** Friends, doctors and familiar streets are part of what a move would cost.

A third route is to sell and use a reverse mortgage to help [buy a condo in Toronto](/buy-a-condo-with-a-reverse-mortgage-toronto/), with no required monthly mortgage payments; condo fees, property taxes and insurance still apply.

Richard Hopkins, Mortgage Broker, shows you what staying and moving to a smaller place would each cost, by email, and his recommendation is based on your situation, reverse mortgage or not. The [Toronto reverse mortgage calculator](/tools/reverse-mortgage-calculator-toronto/) shows how your equity could change over 15 years if you stay.

## The bottom line

Downsizing from a $1,300,000 Toronto house to a $900,000 condo costs about $91,000 to $110,000 up front, and $28,950 of that is the two land transfer taxes. Staying and borrowing costs interest instead, and interest builds only on the money you take. Which route fits depends on the house, your health and where your family lives, not only on the numbers.

[Get a free estimate for your Toronto home](/estimate/). It's free, and there's no sales pressure.

## Questions people also ask

**How much is land transfer tax on a $900,000 condo in Toronto?**

**$28,950** in total for a buyer who is not a first-time buyer: $14,475 to Ontario and $14,475 to the City of Toronto. Both taxes use the same brackets up to $2,000,000, and the City adds a $102.56 admin fee plus HST.

**Is downsizing or a reverse mortgage the better value?**

Neither is the better value in every case. Downsizing a $1,300,000 Toronto house to a $900,000 condo costs about $91,000 to $110,000 up front. A reverse mortgage costs interest instead, which grows each year and builds only on the money you take. The answer depends on how much you need and how long you stay.

**Is HST charged on real estate commission in Ontario?**

Yes. The seller pays 13% HST on top of the commission. A 4% commission on a $1,300,000 sale is $52,000, plus $6,760 of HST, for a total of $58,760.

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## More guides for Toronto homeowners

-   [What are the alternatives to a reverse mortgage in Toronto?](/guide/alternatives-to-reverse-mortgage-toronto/)
-   [How much does a reverse mortgage cost in Toronto?](/guide/reverse-mortgage-cost-toronto/)
-   [How much can a 70-year-old borrow with a reverse mortgage in Toronto?](/guide/how-much-can-a-70-year-old-borrow-toronto/)
-   [How does Toronto's property tax deferral for seniors work?](/guide/toronto-property-tax-deferral/)

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## Sources

Figures checked October 31, 2026.

1.  [Ontario Ministry of Finance: Calculating land transfer tax](https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax)
2.  [City of Toronto: Municipal Land Transfer Tax rates and fees (rates from April 1, 2026)](https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rates-and-fees/)
3.  [Real Estate Council of Ontario (RECO): Signing a contract with a real estate brokerage](https://www.reco.on.ca/consumers/things-you-need-to-know/signing-a-contract-with-a-real-estate-brokerage)
4.  [Insight Law Firm (a law firm that sells real estate legal services): Real estate lawyer fees, updated May 23, 2026](https://insightlawfirm.ca/real-estate-lawyer-fees/)
5.  [HomeStars (a home-services directory): Moving cost in Toronto price guide](https://www.homestars.com/moving/price-guides/moving-cost-toronto)

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Operated by Dominion Lending Centres Homestead Financial, a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario, brokerage licence #11711. Independently Owned and Operated. TorontoReverseMortgage.ca is a website of Dominion Lending Centres Homestead Financial, not a separate brokerage. Richard Hopkins, Mortgage Broker, licence M16000896.