Downsizing Benefits for Ontario Homeowners | Costs, Comfort, Options

Updated: February 2026

By the Keith and Françoise Real Estate Team, Ontario REALTORS®, with eXp Realty Brokerage. We help homeowners across the Greater Toronto Area and the Niagara Region downsize with practical planning around timing, sale coordination, and next-home options.

Downsizing is often described as moving to a smaller home, but the practical decision is whether your next home will be easier to carry, easier to maintain, and a better fit for how you live now. This article covers the main considerations that help Ontario homeowners downsize without avoidable delays.

If you want the full downsizing framework and supporting links, start with Downsizing in Ontario.

Start with the “next-home” decision

Most downsizing plans stall because the sale is treated as the first step. In practice, downsizing is easier when you clarify what the next home must do before you set a listing timeline. That includes the type of home, the location, and the monthly carrying cost you are trying to achieve.

Questions that prevent the most common mistakes

• Do you want to stay in the same community, or are nearby areas acceptable?
• Do you need one-floor living, or is a short set of stairs fine?
• Are you open to a condo, or do you need a freehold option?
• Is your priority lowering monthly costs, reducing upkeep, or both?

If staying in the same community is a requirement, this supporting page is the best next step: How to Downsize Without Leaving Your Community in Ontario.

Understand what “downsizing” actually changes financially

Downsizing can reduce monthly housing costs, but it is not automatic. A smaller home may lower utilities and maintenance, but condo fees, property taxes, insurance, and mortgage structure can change the result. The most useful comparison is the full monthly carry, not the purchase price alone.

If you want a full breakdown of trade-offs, see: Renting vs Buying After Downsizing in Ontario.

Expect inventory constraints in many Ontario communities

Many established Ontario neighbourhoods have limited housing types that suit downsizers. Bungalows, smaller detached homes, and low-rise condos often exist in far smaller numbers than buyers expect, which can extend timelines and limit choice. TRREB market data consistently shows that housing supply varies significantly by area and housing type, helping explain why suitable downsizing options are often scarce in established communities. Toronto Regional Real Estate Board (TRREB).

Sell first or buy first

One of the biggest downsizing choices is whether to sell before buying or buy before selling. Selling first usually provides clarity on budget and reduces risk, but it requires confidence that your next housing option is available when you need it. Buying first can work in certain situations, but it can add pressure if the sale takes longer than expected.

Belongings are a timing issue, not just a moving issue

Decluttering is often the hidden factor that determines how smooth downsizing feels. It affects staging, photos, showings, and how quickly you can actually move. Downsizers who start early usually have more control over timing and fewer last-minute decisions.

If this is your main friction point, use: What to Do With All Your Stuff When Downsizing in Ontario.

What usually comes next

Once you define the next-home target and the timing constraints, the next steps become practical. Most homeowners move forward by narrowing acceptable housing types, confirming what inventory exists in the target area, and choosing whether selling first makes sense. From there, early decluttering and sale preparation keep the timeline realistic.

This page is provided for general information only and does not constitute legal or financial advice. Costs, financing terms, and real estate outcomes vary by property, market conditions, and individual circumstances.