Published 29 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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It can work, but it trades a home you control for a monthly bill that keeps rising. In August 2026 the median detached house in the City of Toronto sold for $1,170,000 (TRREB), and Toronto’s average asking rent was $2,570 a month (Rentals.ca), or $30,840 a year. Before tax, investment returns and rent increases, that sale price less an illustrative 4% commission would cover about 36 years of average rent. The catch is rent control: units first occupied after 15 November 2018 are exempt from Ontario’s rent increase guideline, so a newer building can raise the rent by more. Selling and renting suits people who want freedom and cash; it suits people who want certainty less well.
The idea, and why so many people are asking
You have lived in the house for decades. It is worth far more than you paid, the stairs are getting harder, and the garden takes more of your weekends than you would like. Selling and renting sounds like the cleanest answer: take the equity, let a landlord worry about the roof, and keep the money working for you.
For some people it is exactly right. For others it creates a new worry, a rent that rises every year for as long as they live. This guide puts real Toronto numbers on both sides so you can see which camp you are in. For the wider view of where to live, start with our GTA retirement hub.
What your house frees up
These are TRREB’s medians for one month, August 2026. A median is the middle sale, which is a better guide to a typical home than the average. Your street can be well above or below.
| Area | Detached median | Detached sales | Condo apartment median |
|---|---|---|---|
| City of Toronto | $1,170,000 | 550 | $550,000 |
| Toronto West (incl. Etobicoke) | $1,100,000 | 185 | $525,000 |
| Toronto Central | $1,800,000 | 171 | $576,900 |
| Toronto East (incl. Scarborough) | $950,000 | 194 | $482,000 |
| Mississauga | $1,189,000 | 164 | $500,000 |
| Oakville | $1,604,000 | 103 | $515,000 |
From the sale price come commission, legal fees, any mortgage or line of credit, and moving costs. Commission is negotiable. The tables below use an illustrative 4% so you can see the shape of the arithmetic; the net proceeds calculator will do it properly for your price.
What renting costs in Toronto
Rentals.ca’s National Rent Report put Toronto’s average asking rent at $2,570 in August 2026, down 1.4% year over year. Three-bedroom asking rents averaged $3,642, up 3.5%. Oakville averaged $2,684. Asking rents are what a new tenant is quoted, which is what you would be.
Remember what renting removes as well as what it adds. You stop paying property tax, home insurance on the building, and every repair. You still pay tenant insurance and, in many units, hydro. And you give up the relief programs that only homeowners get, such as Ontario’s Senior Homeowners’ Property Tax Grant.
Years-of-rent arithmetic (illustrative)
Here is the simplest possible test: take the median price, subtract an illustrative 4% commission, and divide by a year of Toronto’s average asking rent. This ignores legal and moving costs, tax, what the money earns while invested, and rent increases, so it is a sense of scale, not a plan.
| Home sold (TRREB median, August 2026) | Median price | Less illustrative 4% commission | Years of Toronto average asking rent ($30,840 a year) |
|---|---|---|---|
| City of Toronto detached | $1,170,000 | $1,123,200 | 36.4 |
| Toronto West detached | $1,100,000 | $1,056,000 | 34.2 |
| Toronto East detached | $950,000 | $912,000 | 29.6 |
| Toronto Central detached | $1,800,000 | $1,728,000 | 56.0 |
| City of Toronto condo townhouse | $661,650 | $635,184 | 20.6 |
| City of Toronto condo apartment | $550,000 | $528,000 | 17.1 |
Two things jump out. A typical detached house covers decades of average rent, which is why the idea is so appealing. But a condo apartment covers far fewer, which is why selling a condo to rent is a much tighter call. Rent also rises over time, and your money needs to outpace it. That is a question for a fee-only planner, not a realtor.
Rent control, and the 2018 exemption that matters most
Ontario sets a yearly rent increase guideline that limits how much a landlord can raise the rent for a sitting tenant. But units first occupied after 15 November 2018 are exempt. In a newer purpose-built rental or a newer condo rented from its owner, the guideline does not cap your increases.
For a 25-year-old tenant that is an annoyance. For someone planning to rent for the next twenty or thirty years, it is the single biggest risk in the plan. Before you sign a lease, ask when the unit was first occupied. An older building with guideline protection may be worth more to you than a newer one with a better lobby.
The guideline also covers care homes, including retirement homes, but not long-term care homes. If a retirement home is likely in your future, see selling the house to pay for a retirement home.
The tax side, briefly
- The gain on your home is usually tax-free if it was solely your principal residence for every year you owned it.
- You still have to report the sale on Schedule 3 and Form T2091(IND). Late designation can cost the lesser of $8,000 or $100 for each full month late.
- Income from the invested proceeds is taxable. If it pushes your net income above $95,323 for 2026, the 15% OAS recovery tax begins.
Our post on capital gains when downsizing covers the exceptions. Talk to your accountant before you list.
Pros and cons, honestly
| Selling and renting gives you | Selling and renting costs you |
|---|---|
| A large lump sum to invest, spend or give | Rent that can rise every year for life |
| No roof, furnace, snow or lawn | Less control: landlord rules, possible sale of the building |
| Freedom to move near family or care later | No more homeowner tax relief or grants |
| Simpler estate for your executor | Buying back in later means land transfer tax again, with no first-time rebate |
When I walk a house with a couple in their seventies, the question I ask is not “can you afford to rent?” It is “how would you feel about a rent increase letter every year at 88?” The answer tells you a lot.
The middle paths
- Downsize and buy. Sell the house, buy a condo or smaller home, and keep the difference. See what your house buys when you downsize.
- Borrow against the house. A reverse mortgage lets people usually 55+ borrow up to 55% of the home’s value with no regular payments, but the balance grows. Compare it in reverse mortgage vs HELOC vs selling.
- A life lease. A lump sum buys the right to live in a unit, often for life, usually priced below similar condos. See life lease housing in Ontario.
Before you list: a short checklist
- Get a realistic sale range from recent sold prices on your street, not the average for the city.
- Run the downsizing money planner below with your own figures.
- Shortlist rentals and ask each landlord when the unit was first occupied.
- See your accountant about the sale year, the proceeds and the OAS threshold.
- Talk to your family: if you plan to help children with the proceeds, read giving your children money from the house sale first.
If you would like a straight read on what your house would sell for, book a call or phone me at 833-330-1925.
Free tool — Downsizing money planner
Downsizing money planner
See roughly how much a move frees up, what the next place costs, and how long the money lasts. Prices start at TRREB’s August 2026 medians; change any number to match your home.
Want the line-by-line breakdown, plus what homes like yours actually sold for on your street? I’ll show the full breakdown here and send you a short written plan. No obligation, no spam.
Estimates only, not advice or a valuation. Starting prices are TRREB Market Watch August 2026 medians (one month, whole-municipality figures). Rent default: Rentals.ca August 2026 Toronto average asking rent. Retirement home default: CMHC’s last Seniors’ Housing Survey (2021, Toronto, studio or private room with meals; CMHC has since discontinued it), so expect higher today. Land transfer tax uses Ontario’s brackets, plus Toronto’s municipal tax for Toronto purchases; repeat buyers get no first-time rebate. Property tax is estimated on the price, but your bill is based on MPAC’s assessed value, which is usually lower.
Frequently asked questions
Is it smart to sell your house and rent when you retire?
It can be, if you value freedom from upkeep and want access to your equity. The risk is rising rent over a long retirement, especially in units first occupied after 15 November 2018, which are exempt from Ontario’s rent increase guideline. Model it with a fee-only planner before deciding.
How long will the money from my house last if I rent?
As rough arithmetic, a Toronto detached house at the August 2026 median of $1,170,000, less an illustrative 4% commission, equals about 36 years of the city’s average asking rent of $2,570 a month. Rent increases, tax and investment returns all change that, so treat it as a sense of scale only.
Do I pay tax when I sell my house in Ontario?
Usually not on the gain, if the home was solely your principal residence for every year you owned it. You must still report the sale on Schedule 3 and Form T2091(IND). Income earned on the invested proceeds is taxable, so speak to your accountant.
Can my landlord raise my rent as much as they want?
For most units first occupied before 15 November 2018, increases for a sitting tenant are limited by Ontario’s yearly rent increase guideline. Units first occupied after that date are exempt from the guideline. Always ask when the unit was first occupied before you sign.
What is the average rent in Toronto for seniors?
There is no separate seniors’ figure. Rentals.ca put Toronto’s average asking rent at $2,570 in August 2026, across all unit sizes. Retirement homes are different: CMHC’s last survey, in 2021, showed $4,016 a month for a studio or private room with meals in the Toronto area.
Should I sell my condo and rent instead?
The arithmetic is tighter than for a house. At the August 2026 City of Toronto condo apartment median of $550,000, less an illustrative 4% commission, the proceeds equal about 17 years of average asking rent. That can still make sense, but plan for rent increases.
Sources
- TRREB — Market Watch, August 2026 — August 2026 sales and median prices by home type and municipality
- Rentals.ca — National Rent Report — Toronto average asking rent, August 2026
- Government of Ontario — Rent increase guideline — units first occupied after 15 November 2018 are exempt
- Government of Ontario — A guide to programs and services for seniors: Home and housing — rent guideline covers retirement homes, not long-term care
- Canada Revenue Agency — Principal residence and other real estate — when the gain on your home is not taxed
- Canada Revenue Agency — Reporting the sale of your principal residence — Schedule 3, Form T2091(IND), late-designation penalty
- Government of Canada — OAS pension recovery tax — 15% recovery tax and 2026 income threshold
- Financial Consumer Agency of Canada — Reverse mortgages — up to 55% of home value; costs and risks
- Government of Ontario — Life lease housing — usually priced lower than similar condominiums
- Government of Ontario — Land transfer tax refunds for first-time homebuyers — repeat buyers cannot re-qualify
- CMHC Housing Market Information Portal — Seniors’ vacancy rate and average rent, Ontario (2021) — studio/private room with meals, Toronto CMA $4,016 (2021)
- Government of Ontario — Senior Homeowners’ Property Tax Grant — up to $500 a year, income tests
Related reading
- Best places to retire in the GTA (2026)
- What your house buys when you downsize
- How much do you need to retire in Toronto?
- Reverse mortgage vs HELOC vs selling
- Capital gains when downsizing in Ontario
- Aging in place vs downsizing
- Net proceeds calculator
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, and I have helped more than 100 families sell, many of them downsizing after decades in the same house. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from the regulator or the legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.