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), 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). Moving-price guides put a 3-bedroom house at $1,700 to $3,400 before HST (HomeStars).
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; City of Toronto).
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 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 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, 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 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.
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