A Step by Step Senior Downsizing Checklist for Toronto

The short answer

A senior downsizing checklist is most useful in order, because each step feeds the next. The destination shapes the budget, the budget shapes the search and the legal documents need to be ready before any of it is signed. This one is written for a homeowner in the City of Toronto and includes the City programmes and taxes that apply here.

Our guide to downsizing in Toronto covers the wider process. Below is the checklist itself, with the Toronto details marked.

1. Settle the destination and a rough timeline

Start by naming where you are going: a condo apartment, a townhouse, a bungalow, a retirement residence or a move outside Toronto. Then write down the season you want to move in and whether you expect to sell first or buy first. Every later step depends on these answers.

• Destination type
• Area of the city or region
• Target season
• Sell first or buy first

Our post on how long downsizing takes in Toronto helps set a realistic timeline.

2. Review powers of attorney and your will

A move is a sensible point to check that legal documents are current. Ontario describes two kinds of power of attorney. An attorney for property can make decisions about your financial affairs, including paying bills, managing investments and maintaining or selling your house. An attorney for personal care can make decisions about health care, housing and other parts of daily life.

Ontario says you can make a power of attorney document yourself for free or have a lawyer do it and it suggests a lawyer where a situation is complex. Your real estate lawyer will also handle both closings, so it can be efficient to raise the documents at the same time.

• Power of attorney for property
• Power of attorney for personal care
• Will
• Contact details for the lawyer handling both closings

3. Check Toronto’s property tax relief programmes

The City of Toronto runs a Property Tax Increase Cancellation Program and a Property Tax Increase Deferral Program. They are worth checking while you still own the house and again once you own the new home.

Rule	Cancellation program	Deferral program
Combined household income	No more than $62,000	No more than $62,000
Residential assessment	Below $975,000	Not listed as a condition
Age or benefit condition, one of	Over 65, age 60 to 64 receiving the Guaranteed Income Supplement or receiving disability benefits	Over 65, age 60 to 64 receiving the Guaranteed Income Supplement, over 50 and receiving a pension or receiving disability benefits
Ownership	Owned and occupied as principal residence for one year or more before October 31, 2026	Same
2026 deadline	November 2, 2026	November 2, 2026

You must reapply every year. The one-year ownership rule matters for a downsizer: after you move, the new home has to meet it before you can apply there. If you already defer tax on the current house, ask the City how the deferred amount is handled when you sell, so it is counted in your budget.

4. Understand the tax on the sale

The Canada Revenue Agency’s principal residence exemption can reduce or eliminate the capital gain on a home that qualifies as your principal residence. The sale must still be reported on your tax return and only one property per family unit can be designated for a given year, which matters if you have also owned a cottage or a second home. Ask an accountant to confirm your position before you list.

Also consider the Ontario Seniors Care at Home Tax Credit if you or a spouse turned 70 or older in the year. It is worth up to 25% of claimable medical expenses up to $6,000, to a maximum credit of $1,500, reduced once family net income passes $35,000. Eligible expenses include renovation or construction that improves mobility, access or functioning within the home, which can matter if the new home needs changes.

5. Sort the house, starting early

Sorting a long-held house is the step that most often sets the pace of the whole move, so start it before listing.

1. Begin with the least sentimental categories, such as duplicate kitchenware, linens and tools.
2. Work one room at a time rather than the whole house at once.
3. Decide what the new home has room for before deciding what to keep.
4. Leave photographs and keepsakes until last, when the practical decisions are done.
5. Arrange donation or pickup separately from deciding, so one does not slow the other.

If the house is part of an estate rather than your own move, our page on selling an estate home in Toronto covers the different steps.

6. Choose the new home type and price the purchase

Most downsizers compare a condo apartment, a condo townhouse, a freehold townhouse and a bungalow. Our comparison of a bungalow, condo or townhouse for downsizing in Toronto sets out August 2026 prices and monthly costs for each.

Buying in the City of Toronto means paying both Ontario’s land transfer tax and the City’s municipal land transfer tax. Up to $2,000,000 they use the same brackets, so on a $550,000 condo each is $7,475 and the total is $14,950. First-time buyer refunds do not apply to anyone who has owned a home before. Use the Toronto land transfer tax calculator for your own price.

7. Line up the two closings

The order of the sale and the purchase decides whether you ever carry two homes. A longer closing on the sale and a purchase that closes a few days earlier is a common way to move straight from one to the other. Our post on whether to sell first or buy first covers the trade-offs.

If the old house could be empty for a long stretch, check the Vacant Home Tax. The City applies it to a residential property vacant for six months or more in a taxation year, at 3% of assessed value from the 2024 taxation year. Every owner must declare occupancy each year by April 30. The City lists exemptions, including when the principal resident is in a hospital, long-term or supportive care facility for at least six months of the year.

Before you sign with anyone to sell the house, the Real Estate Council of Ontario suggests using its agent and brokerage search to confirm that the person is registered. RECO also recommends understanding what a listing agreement means, how long it will be in effect and what its clauses say before you sign it. If a family member is helping, make sure the owner of the house or their attorney for property is the one who signs.

8. Prepare for move day

• Confirm the possession time on both closings with your lawyer.
• Book movers once dates are firm.
• For a condo, book the elevator and ask about move-in rules with property management.
• Transfer or cancel utilities, insurance and any pre-authorized property tax payments on the old house.
• Update your address with banks, government programmes and the City.

What to do next

1. Write down the destination, the area and the season.
2. Book a lawyer to review powers of attorney and the will alongside the real estate work.
3. Check the City’s relief programmes before the November 2, 2026 deadline if they may apply.
4. Ask an accountant to confirm the principal residence exemption for your sale.
5. Start sorting one room this month.

Nothing in this checklist is legal, tax or financial advice for your situation, so confirm each step with your lawyer, accountant or mortgage professional. When you are ready to plan your own move, contact us.