Guide
Downsizing in Durham: how to sell the family home and move to something smaller
The short answer
Selling a mortgage free $900,000 Durham home and buying a $600,000 condo or bungalow can free up about $234,546 after the selling and buying costs. The questions that matter most are which kind of home comes next, how to time the two closings, and the move itself. A plan made a few months ahead settles most of them.
For many families the house that raised the kids is now more house than they need: rooms nobody uses, stairs, a yard and a roof to look after. Downsizing turns that into a home that fits, and usually into money in the bank as well. Natalia is a Seniors Real Estate Specialist, and she works in English, Russian and Ukrainian.
Rules as checked in October 2026. The figures come from this site's calculators, so you can change any of them to match your own home.
What the numbers look like
Here is a typical Durham move: a mortgage free family home sold for $900,000, and a $600,000 condo or bungalow bought with the proceeds.
| Amount | |
|---|---|
| Sale price of the family home | $900,000 |
| Selling costs (commission at 5% with HST, the lawyer, the move) | $54,045 |
| Cash from the sale | $845,955 |
| Price of the next home | $600,000 |
| Ontario land transfer tax | $8,475 |
| Lawyer with HST, title insurance and an inspection | $2,934 |
| Money freed up | $234,546 |
There is no first time buyer refund when you downsize, so the full land transfer tax applies. Durham has no city land transfer tax. Check both sides in the net proceeds calculator and the land transfer tax calculator.
Choosing what comes next
- A condo apartment: no snow, yard or roof, often an elevator, and a monthly condo fee that covers the building. Ask what the fee includes and how healthy the reserve fund is.
- A bungalow: everything on one floor and a yard of your own, with the upkeep that comes with it.
- A townhouse or condo townhouse: a middle ground, though many have stairs.
- Renting: the most flexible, and it frees all of the equity. The rent versus buy calculator shows how the two compare over ten years.
- Closer to family: many downsizers move to be near children and grandchildren. The town pages compare commutes, GO stations and highways across Durham.
Timing the sale and the purchase
- Sell first: you know exactly what you can spend, but you may need somewhere to stay between closings. A longer closing date on your sale can close that gap.
- Buy first: you secure the next home, but you may carry two homes for a while. Bridge financing from your lender can cover the gap for a short time.
- Same day: with matching closing dates, the sale money pays for the purchase on the same day and you move once.
If you still have a mortgage, ask your lender about the prepayment penalty (opens in a new tab) before you list.
Taxes and money
The sale of your principal residence (opens in a new tab) is usually tax free for the years you lived there, but you must still report it on your tax return. Before you invest or gift the money you free up, talk to your accountant or financial planner. Ontario's guide to programs and services for seniors (opens in a new tab) lists the provincial help available.
Getting the house ready, and the move
- Start early. Decades of belongings take longer to sort than anyone expects. Start with the rooms you use least.
- Bring family in. Decide together who keeps what before moving day.
- Fix only what matters. Buyers notice leaks, worn floors and tired paint. Most other upgrades rarely pay for themselves.
- Measure the next home. Knowing which furniture fits makes the sorting easier.
How Natalia helps
Natalia has helped Durham families move for 25 years, and her clients often mention her patience and her follow up after the sale. Read what they say, learn more about Natalia, start with a home value range, or book 15 minutes to talk through your move.
Questions people ask
How much money will I free up by downsizing in Durham?
In this guide's example, selling a mortgage free $900,000 home and buying a $600,000 home frees about $234,546, after the commission and HST, two lawyers, the land transfer tax, an inspection and the move.
This answer on its own pageShould I sell my house first or buy my next home first?
Selling first means you know your budget, but you may need somewhere to stay between closings. Buying first secures the next home, but you can end up paying for two. Many downsizers sell first with a longer closing, or line up both closings on the same day.
This answer on its own pageDo I pay tax when I sell my family home?
Usually not, if it was your principal residence for all the years you owned it. You still report the sale on your tax return, on Schedule 3 and Form T2091. An accountant can confirm it for your situation.
This answer on its own pageIs a condo or a bungalow better for downsizing?
A condo apartment means no snow, yard or roof to look after, in exchange for a monthly condo fee. A bungalow keeps everything on one floor with a yard of your own, and the upkeep that comes with it. The right choice depends on stairs, upkeep and where family is.
This answer on its own pageDo I get the land transfer tax refund when I downsize?
No. The refund is only for first time buyers. On a $600,000 home the Ontario land transfer tax is $8,475, and Durham has no city land transfer tax on top.
This answer on its own pageSources
Rules and rates come from these pages. Market figures are as reported for the dates shown.
General information, not legal, tax or mortgage advice. Rates, prices and rebate rules change often. Confirm the details with your real estate lawyer and a licensed mortgage professional before you make a decision.