Run the Net Number, Not the Sale Price
The figure that matters is what lands in your account after commission, legal fees, land transfer tax on the new place, moving costs and the inevitable furnishings. In many Ontario markets that gap between the sale price and the net proceeds is larger than people expect. Once you see the real net, the decision usually gets simpler.
You Can Still Carry a Mortgage in Retirement
Pension income, RRIF withdrawals, CPP and OAS all count as income for most lenders, so a small mortgage on the new property is often approvable. A modest mortgage can let you keep investments intact instead of liquidating them at a bad moment. The right size depends on your monthly comfort, not the maximum a calculator spits out.
When Staying Put Wins
If you love the house, the neighbours and the location, a reverse mortgage or a line of credit can free up cash without a moving truck. Downsizing only makes sense when the smaller home genuinely fits the life you want next. I have talked plenty of clients out of moves that would have cost them money and comfort.
Frequently Asked Questions
Can retirees get a mortgage in Ontario?
Yes. Lenders qualify pension, RRIF, CPP, OAS and investment income the same way they qualify a salary. Age is not a disqualifier, and there is no maximum age for a mortgage in Canada.
Is downsizing or a reverse mortgage better?
Downsizing frees the most capital and lowers ongoing costs, but it means moving. A reverse mortgage keeps you in the home and requires no monthly payment, at the cost of interest compounding against your equity. The right choice depends on whether you want to stay.
What does it cost to move within Ontario?
Budget roughly four to six percent of the sale price for commission and legal fees, plus land transfer tax on the purchase, movers and setup costs. Toronto buyers pay municipal land transfer tax on top of the provincial one.
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