Published 10 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
The headline arithmetic is always wrong. Selling a $1,200,000 Etobicoke house and buying an $800,000 condominium does not free $400,000. After commission, legal fees, moving and preparation on the sale side, and both land transfer taxes plus legal and closing costs on the purchase side, the realistic figure is closer to $310,000 to $330,000. Then compare true monthly costs rather than mortgage payments, because a condominium fee replaces several house expenses rather than adding to them. Do that arithmetic before you decide, not after you have listed.
The worked number
TRREB reported an average Etobicoke sale price of $1,049,793 across 243 sales in August 2026. The example below uses a $1,200,000 detached sale and an $800,000 condominium purchase, both plausible Etobicoke figures.
| Item | Amount |
|---|---|
| House sale price | $1,200,000 |
| Real estate commission (illustrative, negotiable) | −$60,000 |
| Legal fees and disbursements on the sale | −$1,800 |
| Preparation, staging and repairs | −$6,000 |
| Mortgage discharge or prepayment charge (if applicable) | −$0 to $8,000 |
| Net from the sale | $1,132,200 |
| Condominium purchase price | −$800,000 |
| Ontario land transfer tax | −$12,475 |
| Toronto municipal land transfer tax | −$12,475 |
| Legal fees, disbursements and title insurance on the purchase | −$2,700 |
| Status certificate and review | −$450 |
| Reserve fund contribution (two months of fees) | −$1,300 |
| Adjustments | −$900 |
| Moving, downsizing the contents, disposal | −$4,000 to $12,000 |
| Realistically freed up | about $290,000 to $302,000 |
That is roughly $100,000 less than the difference between the two prices. It is still a substantial sum — but plans built on the headline number get revised in an unpleasant week somewhere around closing.
The ongoing comparison people get wrong
The common objection to a condominium is “the fees.” That comparison is only meaningful if you count what the house was costing you in the same categories.
| Monthly cost | Etobicoke house | Etobicoke condominium |
|---|---|---|
| Property tax | Higher assessed value, higher tax | Lower assessed value, lower tax |
| Heat, hydro, water | All yours, on a larger envelope | Some or all may be in the fee, depending on the building’s age |
| Insurance | Full building and contents | Unit policy only — the corporation insures the building |
| Maintenance and repairs | Roof, furnace, windows, drains, appliances, exterior | Common elements are in the fee; in-suite items are yours |
| Lawn, garden, snow | Your time or your money | In the fee |
| Capital replacement | Irregular, unbudgeted, and always at the wrong time | Smoothed through the reserve fund contribution |
| Condominium fee | — | The consolidated line for most of the above |
Run your last three years of actual house costs, including the roof, the furnace and the driveway, and divide by thirty-six. That is the number to compare against a condominium fee — not zero.
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Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.
Sell first or buy first?
| Sell first | Buy first | |
|---|---|---|
| What you know | Exactly how much you have | Exactly where you are going |
| Main risk | Not finding the right unit in time; interim accommodation and a second move | Carrying two properties, and selling under time pressure |
| Best when | There is good inventory in your target buildings | The specific unit you want is rare and has just come up |
| Tools | A longer closing on the sale; a condition on the purchase | Bridge financing; a condition on the sale of your property |
For most downsizers, selling first with a longer closing is the lower-risk path, because it removes the possibility of having to accept a poor offer on the house to make a purchase close. The exception is a genuinely scarce unit — a large suite in a specific older Etobicoke corporation, for instance, where three comparable units might come to market in a year.
The tax question to ask before you list
Where the house has been your principal residence throughout your period of ownership, the gain is generally sheltered. Where it has not — a period of renting it out, a change of use, a second property, or a portion of the property used to earn income — the position is more complicated and the amounts can be significant.
Ask an accountant before you list, not after you sell. The relevant history is yours, the designation is yours to make, and the time to understand it is while you still have choices about timing and structure.
Choosing the right condominium as a downsizer
Downsizers have different priorities from first-time buyers, and the buildings that suit them are often not the ones that market hardest.
- Suite size. The older Etobicoke corporations across Rexdale, Markland Wood, Kipling, Royal York and the Mill Road cluster offer suites 30% to 60% larger than new construction for the money. If you are coming from a house, that difference is the whole point.
- Storage. A locker, and enough in-suite storage that you are not living among boxes. Confirm whether the locker is owned, exclusive use or rented.
- Parking. Two spaces are rare and worth confirming early if you need them.
- Accessibility. Step-free entry, elevator reliability, a walk-in shower, doorway widths, and how far the parking space is from the elevator.
- Amenity load you will actually use. You pay for a pool monthly whether you swim or not.
- Reserve fund health. Non-negotiable. A special assessment landing on a fixed income is exactly the outcome downsizing was supposed to avoid.
- Proximity. To the people, the routines and the services you actually use, which is usually a shorter list than people expect and closer to where they already live.
The order to do it in
- Work out the true net number using the table above, with your own figures.
- Run your last three years of house costs and divide by thirty-six.
- Speak to an accountant about the principal residence position.
- Shortlist buildings, not units. Get the fee inclusions and three years of fee history for each.
- Decide sell-first or buy-first, deliberately, and set the closing dates around that choice.
- Start dealing with the contents months before you list — it always takes longer than expected.
- Have a lawyer read the status certificate of the unit you choose, with the reserve fund as the headline question.
The part that is not arithmetic
Most downsizing decisions stall on the contents rather than the finances. Forty years of belongings, and children who do not want the dining set. Start early, work room by room rather than by category, deal with paperwork and photographs first because they are the slowest, and get help — there are professional services for exactly this, and they are cheaper than a delayed closing.
It is also worth saying plainly: downsizing is not only a financial decision, and the financially optimal answer is not always the right one. A building close to the people you see every week is worth something real that does not appear in any table on this page.
Frequently asked questions
How much money does downsizing actually free up?
Considerably less than the difference between the two prices. On a $1,200,000 house sale and an $800,000 condominium purchase in Etobicoke, commission, legal fees and preparation on the sale plus both land transfer taxes, legal costs, the status certificate, the reserve fund contribution, adjustments and moving on the purchase take roughly $100,000 out of the $400,000 gap. Budget on about $290,000 to $302,000.
Are condo fees more expensive than owning a house?
Usually not, once you compare honestly. The fee consolidates costs you were already paying on a house: exterior maintenance, snow and lawn, building insurance, capital replacement, and in many older buildings heat, hydro and water. Take your last three years of actual house costs including the roof and the furnace, divide by thirty-six, and compare that figure — not zero — against the fee.
Should I sell my house first or buy the condo first?
For most downsizers, selling first with a longer closing is lower risk, because it removes the pressure to accept a poor offer on the house in order to make a purchase close. Buying first makes sense when the specific unit you want is genuinely scarce — a large suite in a particular older corporation, for example — and then bridge financing or a condition on the sale of your property is the tool.
Do I pay tax on the sale of my house when I downsize?
Where the property has been your principal residence throughout your period of ownership, the gain is generally sheltered. Where it has not — a rental period, a change of use, a second property, or part of the property used to earn income — the position is more complex and the amounts can be significant. Ask an accountant before you list, while you still have choices about timing.
What closing costs do I pay on the condo purchase?
Both land transfer taxes, because Etobicoke is inside the City of Toronto — on an $800,000 purchase that is $12,475 provincially and $12,475 municipally, in cash and not financeable. Then legal fees, disbursements and title insurance, the status certificate and its review, a reserve fund contribution equal to roughly two months of common expenses, and adjustments for prepaid property tax and fees.
What should a downsizer look for in a condo building?
Suite size and storage first, because those are what you are giving up; then parking, accessibility, and an amenity load you will actually use. Then the reserve fund, which is non-negotiable — a special assessment landing on a fixed income is the outcome downsizing was meant to avoid. The older Etobicoke corporations often deliver far more space per dollar than new construction.
How long should I allow for the whole process?
Longer than you think, and the contents are the reason. Allow several months to work through belongings before listing, four to eight weeks to prepare and market the house, and a closing period long enough to find the right unit rather than the available one. Compressing this is how people end up in a second move and an interim rental.
Is it worth downsizing within Etobicoke rather than leaving?
Financially, leaving the City of Toronto avoids the municipal land transfer tax on the purchase, which is real money — $12,475 on an $800,000 purchase. Against that, staying keeps you near the people, routines and services you already use, and the older Etobicoke corporations offer unusually large suites. Do the arithmetic, then weigh it against the part that is not arithmetic.
Sources
- Ontario Ministry of Finance — Land Transfer Tax — the provincial brackets used in the worked example. Accessed 10 September 2026.
- City of Toronto — Municipal Land Transfer Tax — the Toronto brackets applying to every Etobicoke purchase. Accessed 10 September 2026.
- Canada Revenue Agency — principal residence designation and reporting on the disposition of a home. Accessed 10 September 2026.
- TRREB Market Watch, August 2026 — the Etobicoke average sale price of $1,049,793 across 243 sales. Accessed 10 September 2026.
Related reading
- Capital gains when downsizing in Ontario
- Helping your parents downsize in Etobicoke
- Aging in place vs downsizing in Etobicoke
- The Etobicoke condo buying guide
- Closing costs on an Etobicoke condo in 2026
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway in Etobicoke, with more than four years of active GTA transactions and over $100M in sales volume. The downsizing conversations that go well are the ones that start with the real net number rather than the difference between two prices.
Reach me at connect@jatindua.com or 833-330-1925.