Downsizing in 2027: A GTA Guide for Empty Nesters

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — What GTA empty nesters can free up by downsizing in 2027, what it costs, the tax rules to know and a step-by-step timeline.

This guide is for GTA empty nesters thinking about selling the family home in 2027 and moving somewhere smaller. You will get the latest price gap between houses and condos city by city, the real costs of the move, the tax rules that catch long-time owners, and a simple timeline you can follow.

Is 2027 a good year to downsize in the GTA?

For most empty nesters, the timing works better than the headlines suggest, because you are selling and buying in the same market. In October 2026, TRREB reported a GTA average detached price of $1,310,627, down 3.2% from a year earlier. The average condo apartment price was $621,400, down 5.8%. Condos fell further than houses.

That matters because a downsizer sells the bigger, pricier home and buys the smaller one. When the smaller one drops faster, the gap between them stays wide. You may get less for your house than a neighbour did in 2022, but your next home costs less too.

There are two catches. First, buyers for family homes are cautious: TRREB said many buyers stayed on the sidelines in October 2026 because of inflation and borrowing costs. Second, the Bank of Canada raised its policy rate to 2.50% on 28 October 2026, which makes mortgages more expensive for the people buying your house. Pricing your home right from day one matters more than it did a few years ago.

How much money can you free up by downsizing in the GTA?

The table compares 2026 median prices for detached houses, condo townhouses and condo apartments in the same city. The last column shows the Ontario land transfer tax you would pay buying a condo apartment at that city’s median.

Source: TRREB MLS data via REALM, January to October 2026 vs the same period of 2025 (median sold prices; Toronto figures are TRREB districts C04 and W08, not single neighbourhoods). Land transfer tax calculated by me from Ontario and City of Toronto rates, before any refunds.

Three things to read from this. The gap is biggest in Oakville and Toronto’s pricier districts, where a typical house is worth about three condo apartments or more. Condo townhouses cost about $150,000 to $250,000 more than condo apartments in most cities, which is the price of keeping a front door and a bit of outdoor space. And in Durham cities like Whitby, the gap is much smaller, so moving into a condo frees up less cash.

These are medians, not your home’s value. A renovated detached house on a good street can sell well above the median, and a dated one well below. For the same idea with more cities, see what your house buys when you downsize.

Should you sell your house first or buy the condo first?

Most of my downsizing clients sell first, or sell and buy with closing dates that line up. The reason is simple: the house is the bigger number and the harder sale. Condo apartment buyers in 2026 had lots of choice. In Mississauga, for example, condo apartments averaged 42 days on market in 2026 versus 31 days for detached homes, and in Markham 39 days versus 29.

Buying first makes sense if you have found the one unit you want and can carry both homes for a while, either from savings or with bridge financing. If you go that route, remember that prime moved to 4.70% after the October 2026 rate hike, so carrying costs on a line of credit went up. My post on selling first or buying first in Toronto runs through both options.

House, condo townhouse or condo apartment: which suits an empty nester?

• Condo apartment. Lowest price, no snow or lawn, elevators, often a concierge. You pay monthly fees and live with building rules.
• Condo townhouse. Your own entrance and often a small yard or terrace, with fees covering some outside work. Many have stairs on several levels, which matters if knees or hips are a concern.
• Bungalow or smaller freehold. No condo fees and full control, but you still handle the roof, furnace and snow. In many GTA cities a bungalow costs close to a two-storey house, so it frees up less money.

Whatever you buy in a condo, read the status certificate before you firm up. The Condominium Authority of Ontario says a condo corporation can charge up to $100, including taxes, for it and must offer that price for delivery within 10 days. It shows the fees, the reserve fund and any special assessments or lawsuits. My checklist of what makes a condo good for seniors covers elevators, accessibility and building age.

What does downsizing actually cost in Ontario?

Downsizers often count the sale price and forget the leaks. Here is the list I walk clients through:

• Selling costs: real estate commission, legal fees, any repairs or staging, and paying off the mortgage, which may carry a prepayment penalty if you break it mid-term.
• Buying costs: land transfer tax (see the table above), legal fees, title insurance, a home inspection, and condo fee and property tax adjustments on closing.
• Moving costs: movers, storage if the closings do not line up, and selling or donating furniture that will not fit.
• Ongoing costs: monthly condo fees replace some of what you spent on maintenance. Compare them honestly against your current yearly spending on the house.

Inside the City of Toronto, land transfer tax is charged twice, by Ontario and by the city, which is why the Toronto rows above are roughly double. In Mississauga, Oakville or Markham, you pay only the Ontario tax.

Do you pay tax when you downsize in Ontario?

Usually not on the house you lived in, but you still have to report the sale. If the home was your principal residence for every year you owned it, the principal residence exemption normally covers the whole gain. Under section 54 of the Income Tax Act, a family unit can designate only one property as its principal residence for each year after 1981.

The Canada Revenue Agency says you must report the sale on Schedule 3 of your tax return for the year you sell, and complete Form T2091. If you forget, the CRA may accept a late designation, but the penalty can be $100 for each full month late, up to $8,000. Your accountant should handle this in the spring after you close.

A cottage or rental property is different. Gains on those are capital gains, and under section 38 of the Income Tax Act half of the gain is taxable. The federal government cancelled its proposed increase to that inclusion rate in March 2025. If you own more than one property, plan which one to designate before you sell either. My post on capital gains when downsizing has worked examples.

What help is there with property tax after you downsize?

Ontario’s Senior Homeowners’ Property Tax Grant pays up to $500 a year to lower-income seniors who own and live in their home. To qualify as of December 31 of the previous year, you must be 64 or older, have paid Ontario property tax, and have income under $50,000 if single or $60,000 combined for a couple. You apply through your income tax return.

Some GTA cities also run their own relief programs for low-income seniors, and the rules differ by city; my city-by-city guide to property tax relief for seniors lists them.

How long does downsizing take from start to finish?

Plan on six to twelve months if you want it to feel calm rather than rushed. A timeline that works for most of my clients:

1. Months 1 to 2: decide on the city and home type, get a value estimate for your house, and speak to your accountant about tax.
2. Months 2 to 4: clear out, repair and prepare the house; start viewing condos so you know what your money buys.
3. Months 4 to 6: list the house. In October 2026, GTA homes that sold averaged 31 days on market.
4. Months 5 to 8: buy, with a closing date that matches or follows your sale, and read the status certificate.
5. Last month: move, update your address, and file the sale on your next tax return.

What to do next

1. Get a realistic value range for your house using recent sales on your street, not the 2022 peak.
2. Decide on a city and home type, then compare condo prices and fees in two or three buildings.
3. Talk to your accountant about the principal residence designation and any second property.
4. Choose sell-first or buy-first, and line up bridge financing only if you truly need it.
5. Book a planning call so we can map your dates, costs and net proceeds on one page.

Frequently asked questions

Sources

• TRREB Market Watch, October 2026
• Bank of Canada: policy rate announcement, October 28, 2026
• Ontario Ministry of Finance: Calculating land transfer tax
• Condominium Authority of Ontario: What is a status certificate and how much does it cost
• Canada Revenue Agency: Reporting the sale of your principal residence
• Income Tax Act, section 54 (principal residence definition)
• Income Tax Act, section 38 (taxable capital gain)
• Government of Ontario: Senior Homeowners’ Property Tax Grant

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?