How much money will we actually save by downsizing?
Want real cash savings from downsizing? Here’s the clear math.
Why this matters
If you are 55+ and live in Georgetown, Ontario, downsizing can free money, cut work, and simplify life. But you want to know one thing: how much will you actually save? This guide shows step-by-step numbers you can trust. Read fast. Use the numbers. Act smart.
Quick answer first
Yes, you can save real money by downsizing. Typical annual savings for 55+ home sellers in Georgetown range from $8,000 to $30,000 a year depending on how you downsize (smaller house vs condo) and how much mortgage you pay off. This guide shows exact math and local factors.
Key words to know
- Downsizing Georgetown
- 55+ lifestyle changes
- Georgetown real estate
- Sell my house Georgetown
- Retirement downsizing savings
- Cost of living Georgetown, ON
Local context: Georgetown snapshot
Georgetown is part of Halton Hills. Home types here: family homes, older bungalows, townhouses and condos. Typical costs that change when you downsize:
- Property taxes
- Home insurance
- Heating and utilities
- Maintenance and repairs
- Mortgage payment
- Condo fees (if you move to a condo)
Local agents list commission and closing costs about 4% to 5% plus small legal fees. Condo fees in Georgetown vary widely. Use numbers below to test your situation.
Real example you can copy (simple math)
Scenario A — Current house
- Selling price: $900,000
- Mortgage remaining: $250,000
- Monthly mortgage payment: $1,450 (example)
- Property tax: $7,200/year (0.8% of value as example)
- Utilities + maintenance + insurance: $600/month = $7,200/year
Scenario B — Downsized condo
- Purchase price: $500,000
- New mortgage after downsize: $50,000 (after using sale proceeds)
- Monthly mortgage payment: $290 (example)
- Condo fee: $500/month = $6,000/year
- Property tax: $3,500/year
- Utilities + insurance: $200/month = $2,400/year
Upfront sale costs on $900,000: 5% agent commission = $45,000 + legal and adjustments $3,000 = $48,000
Net proceeds before buying: $900,000 – $250,000 mortgage – $48,000 = $602,000
Buy new condo for $500,000. Leftover cash: $102,000 to pay down the new mortgage and hold as cash or investments.
Monthly payment difference
- Old mortgage payment: $1,450
- New mortgage payment: $290
- Savings: $1,160/month = $13,920/year
Annual cost comparison
- Old annual costs: Mortgage + tax + utilities = $1,450*12 + $7,200 + $7,200 = $17,400 + $14,400 = $31,800/year
- New annual costs: Mortgage + condo fee + tax + utilities = $290*12 + $6,000 + $3,500 + $2,400 = $3,480 + $11,900 = $15,380/year
Annual cash flow savings: $31,800 – $15,380 = $16,420/year
Plus, you freed $102,000 cash. That can pay off the $50,000 new mortgage or be invested for more income.
One-time costs to include
- Moving: $1,500 – $5,000
- Downsizing time and declutter costs: variable
- Renovations at new place: variable
- Capital gains: Normally primary residence is exempt in Canada
Net first-year impact: savings minus sale and move costs. After year one, annual savings continue.
Where the big savings come from
- Mortgage reduction: Selling a higher-priced home and buying lower-priced place allows paying off mortgage principal. Big win.
- Lower maintenance: No more roof, furnace, long driveway, yard work costs.
- Lower property taxes: Smaller property = lower taxes in most cases.
- Energy savings: Smaller space uses less heat and electricity.
- Simpler living: Fewer repairs. Less time. That has value.
When downsizing costs more
Downsizing is not always cheaper. Watch these traps:
- High condo fees. Some buildings have $700+ monthly fees that wipe out savings.
- Renovations in new place.
- Emotional costs: selling family home can lead to rushed mistakes.
- Buy in a more expensive area by mistake.
Do the math before you sell.
A quick worksheet you can use (fill your numbers)
- Current home price: _
- Mortgage left: _
- Selling costs (5%): _
- Net cash after sale: _
- New home price: _
- New mortgage after payment: _
- Monthly mortgage old vs new: vs
- Property tax old vs new: vs
- Maintenance/utility old vs new: vs
- Condo fees if any: _
Calculate: annual old cost minus annual new cost. Add cash freed.
How to keep more cash in your pocket in Georgetown
- Negotiate agent commission and listing strategy. Smart marketing can cut days on market.
- Time the market. Watch local sales and inventory.
- Choose low-fee condos or small freehold units.
- Pay down high-interest debt with proceeds.
- Shop insurance and energy providers.
Downsizing choices for 55+ in Georgetown
- Move to condo near downtown Georgetown for walkability, lower maintenance.
- Move to a bungalow or smaller freehold in same town to stay close to friends.
- Move to a retirement community with services (costs vary).
Each option changes the math. Condos often trade lower maintenance for monthly fees.
Real local tips for Georgetown sellers 55+
- Check nearby condo buildings for fees and reserve fund reports.
- Talk to a local agent about average days on market for your street.
- Get an accurate home value from a realtor who sells in Georgetown.
- Factor in transit, healthcare access, and family when choosing neighborhood.
Action steps (do this this week)
- Get a free market evaluation of your home in Georgetown.
- Fill the worksheet above with real quotes for condo fees, taxes, and utilities.
- Meet with a mortgage broker to see your exact monthly payments after selling.
- Make a list of items to sell, donate, or toss now. Less stuff = lower moving costs.
- Talk to a local real estate expert about timing and net proceeds.
Why you can trust this guide
This math is simple. It uses current cost categories every Georgetown homeowner sees. Focus on numbers. Plug your values. The savings will appear or vanish depending on your choices.
If you want a quick, honest net proceeds estimate for your property in Georgetown and a plan to save the most when you downsize, contact a local expert.
Contact
Tony Sousa, Local Georgetown Realtor
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
FAQ — Downsizing for 55+ in Georgetown, Ontario
Q: Will I pay capital gains tax when I sell my home in Canada?
A: Most likely no. Your primary residence is generally exempt from capital gains tax in Canada. Talk to a tax professional for your exact situation.
Q: How big are realtor fees in Georgetown?
A: Typical listing commission is 4%–5% of sale price. Negotiate and ask for a clear net proceeds estimate.
Q: Do condo fees make downsizing a bad idea?
A: High condo fees can reduce savings. Compare monthly totals (mortgage + fees + taxes + utilities) not just mortgage.
Q: How much will moving cost for a 55+ couple?
A: Local moves often range $1,500–$5,000. Costs depend on volume and distance.
Q: Is it better to rent after selling?
A: Renting removes maintenance and taxes but you lose home equity. Compare long-term costs and personal goals.
Q: Will I lose access to healthcare if I move in Georgetown?
A: No. Georgetown has local clinics and is close to larger hospitals. Check specific providers before you move.
Q: How quickly can I sell and buy in this market?
A: That varies. Work with a local agent to time the sale and buying windows.
Q: What if I want cash flow from sale proceeds?
A: Use leftover proceeds to pay off debt, buy a smaller place outright, or invest for income. Speak to a financial advisor.
Q: Who should I talk to first?
A: Get a local realtor or mortgage broker to run real numbers for your specific home.
If you want a no-pressure net proceeds estimate and a clear plan to maximize cash when you downsize in Georgetown, email tony@sousasells.ca or call 416-477-2620. This is how to turn a house sale into steady savings and less work. Act smart.
