One of the most common questions I hear from families thinking about downsizing is: "What is this actually going to cost us?" It's a fair question — and one that doesn't get answered honestly often enough. The truth is, there are real costs involved in a downsizing move, and understanding them upfront leads to better decisions and fewer surprises.Here's a straightforward breakdown of what to expect.
Real estate commissions.In Ontario, real estate commissions are negotiable and are typically paid by the seller. Commission covers the listing agent's services as well as the buyer's agent commission. The exact amount varies — ask any realtor you're considering to walk you through their fee structure clearly and in writing before you sign anything.
Legal fees.You'll need a real estate lawyer for both the sale of your current home and the purchase of your next one — if you're buying. In Ontario, legal fees typically range from $1,500 to $2,500 per transaction, depending on complexity. If the sale involves Power of Attorney or estate documentation, there may be additional legal steps involved — a good real estate lawyer will walk you through what applies to your situation well before closing.
Land transfer tax.If you're purchasing a new property, Ontario land transfer tax applies. The amount depends on the purchase price — on a $500,000 purchase, for example, you'd pay approximately $6,475, and the amount increases with the purchase price. First-time buyers get a rebate, but most downsizers don't qualify. Your lawyer will calculate the exact amount based on your specific situation.
Moving costs.A local move in the Guelph area typically costs between $1,500 and $4,000 depending on the size of your home, the volume of belongings, and whether you need packing services. If you're downsizing significantly, a senior move manager can help coordinate the process — their fees vary but the support they provide is often well worth the investment.
Pre-sale preparation.Getting your home ready for the market may involve painting, minor repairs, cleaning, staging, and decluttering. The condition of your home determines how much — if anything — needs to be done. A good downsizing specialist will help you figure out what's genuinely worth spending on and what buyers won't care about either way. The goal is never to over-invest — it's to remove objections and present the home well.
Bridge financing — a cost many families don't anticipate.If you purchase your next home before your current one sells, you may need bridge financing to cover the gap between the two closings. Bridge loans are available through most lenders but come with interest costs that add up quickly. The best way to avoid this is to coordinate your sale and purchase timelines carefully — which is something I help clients think through from the very beginning.
Condo fees — an ongoing cost to factor in.If you're moving into a condominium, monthly condo fees are an ongoing cost that many buyers underestimate. In Guelph, condo fees typically range from $350 to $700 per month, depending on the building and what's included. Factor this into your monthly budget alongside property taxes when comparing options.
The bottom line.Downsizing done well can free up significant equity and reduce your monthly carrying costs considerably. But going in with a clear-eyed view of the transaction costs helps you plan properly and avoid being caught off guard.If you'd like a no-obligation conversation about what a downsizing move might look like financially for your specific situation, I'm happy to help.
Real estate commissions.In Ontario, real estate commissions are negotiable and are typically paid by the seller. Commission covers the listing agent's services as well as the buyer's agent commission. The exact amount varies — ask any realtor you're considering to walk you through their fee structure clearly and in writing before you sign anything.
Legal fees.You'll need a real estate lawyer for both the sale of your current home and the purchase of your next one — if you're buying. In Ontario, legal fees typically range from $1,500 to $2,500 per transaction, depending on complexity. If the sale involves Power of Attorney or estate documentation, there may be additional legal steps involved — a good real estate lawyer will walk you through what applies to your situation well before closing.
Land transfer tax.If you're purchasing a new property, Ontario land transfer tax applies. The amount depends on the purchase price — on a $500,000 purchase, for example, you'd pay approximately $6,475, and the amount increases with the purchase price. First-time buyers get a rebate, but most downsizers don't qualify. Your lawyer will calculate the exact amount based on your specific situation.
Moving costs.A local move in the Guelph area typically costs between $1,500 and $4,000 depending on the size of your home, the volume of belongings, and whether you need packing services. If you're downsizing significantly, a senior move manager can help coordinate the process — their fees vary but the support they provide is often well worth the investment.
Pre-sale preparation.Getting your home ready for the market may involve painting, minor repairs, cleaning, staging, and decluttering. The condition of your home determines how much — if anything — needs to be done. A good downsizing specialist will help you figure out what's genuinely worth spending on and what buyers won't care about either way. The goal is never to over-invest — it's to remove objections and present the home well.
Bridge financing — a cost many families don't anticipate.If you purchase your next home before your current one sells, you may need bridge financing to cover the gap between the two closings. Bridge loans are available through most lenders but come with interest costs that add up quickly. The best way to avoid this is to coordinate your sale and purchase timelines carefully — which is something I help clients think through from the very beginning.
Condo fees — an ongoing cost to factor in.If you're moving into a condominium, monthly condo fees are an ongoing cost that many buyers underestimate. In Guelph, condo fees typically range from $350 to $700 per month, depending on the building and what's included. Factor this into your monthly budget alongside property taxes when comparing options.
The bottom line.Downsizing done well can free up significant equity and reduce your monthly carrying costs considerably. But going in with a clear-eyed view of the transaction costs helps you plan properly and avoid being caught off guard.If you'd like a no-obligation conversation about what a downsizing move might look like financially for your specific situation, I'm happy to help.
Call or text: 519.803.9169
Email: laurie@lauriesellshomes.ca