What Downsizing Really Costs in Ottawa, ON: A Net Proceeds Guide

Step 1: Estimate Your Net Proceeds From the Sale

Start with your expected sale price, then subtract:

• Your mortgage payout and any penalty your lender charges
• Selling costs outlined in your listing agreement, plus 13% Ontario HST
• Legal fees and closing adjustments, such as property tax and utilities
• Repairs, touch-ups, cleaning and staging
• Moving, storage and any junk removal
• Overlap costs if you carry two homes for a short time

What is left is the equity you can use for your next home.

Step 2: Add Up the Costs of Buying

Downsizers often forget that buying has its own costs:

• Ontario land transfer tax: Ottawa does not add a municipal land transfer tax. As an example, buying a $600,000 home produces about $8,475 in Ontario land transfer tax. The first-time buyer rebate usually does not apply to someone who has owned before.
• Legal fees and disbursements for the purchase
• Home inspection and any condo status certificate review
• Moving and set-up costs, including new furniture sized for the smaller space

Step 3: Compare the Monthly Costs

Smaller does not always mean cheaper each month. Compare:

• Property tax and utilities for the new home
• Condo fees for apartments and some townhouses, which may include heat, water or amenities
• Maintenance: a condo reduces yard and roof work, while a bungalow keeps those but reduces stairs and upkeep
• Insurance and parking, where they apply

Step 4: Check the Tax Side

Selling a principal residence is often treated favourably for tax purposes in Canada, but your situation can differ, especially if part of the home was rented or used for business. Speak with your accountant before you list.

Step 5: Time the Sale and Purchase

If you have not found your next home yet, plan how much time you need. Some downsizers sell first and rent briefly, while others buy first and sell afterwards. Ask your broker to build a timeline that fits your comfort level.

A Net Proceeds Worksheet You Can Copy

Write these lines on a page and fill in each number:

• Expected sale price
• Minus mortgage payout and any penalty
• Minus selling costs and 13% HST on them
• Minus legal fees and closing adjustments
• Minus repairs, staging and moving
• Equals your net proceeds
• Minus land transfer tax, legal fees and inspection on the purchase
• Equals the cash you have left for your next home

Where Ottawa Downsizers Often Move

Downsizers choose different homes for different reasons:

• Condos near transit and amenities, which reduce yard work and maintenance
• Bungalows, which keep a yard but remove stairs, in areas like Barrhaven and Orléans
• Townhouses, which offer a smaller footprint with more privacy than an apartment
• Communities near family, so grandchildren and friends are close by

Explore the Barrhaven and Orléans community pages to compare areas.

A Downsizing Timeline

• Three to six months before: speak with your broker and accountant, and sort belongings
• Two to three months before: declutter, repair and photograph the home
• Listing period: show the home while you search for the next one
• After the sale: close, move and settle

Do Not Forget the Emotional Side

Letting go of a family home is a big step. Start with one room at a time, set aside items for family and give yourself time to say goodbye. A calm plan makes the financial decisions easier.

Downsize With a Broker Who Explains Every Number

Murtaza Siddiqui is a top-rated RE/MAX real estate broker with Ottawa experience since 2015, the 2026 Top 1% RE/MAX REALTOR® Canada-wide designation, the 2025 RE/MAX Hall of Fame, the 2025 RE/MAX Chairman’s Award and the RE/MAX Platinum Award every year from 2021 to 2025. He helps Ottawa homeowners understand what their home can net and where that money can go, from family homes in Nepean and Barrhaven to condos and bungalows across the city.