Downsizing in Greater Montreal: A Guide

Selling the house where you raised your children is a financial decision and a life decision. It is often presented as a way to free up money. Sometimes it does. Sometimes, once every cost is counted, the gap is much smaller than expected.

Here is the calculation I run with owners who are thinking about it, the options worth comparing and the rules to know. This is general information: for your investments and your taxes, a financial planner or a tax professional is the right person.

First, the real reason

Stairs, upkeep, empty bedrooms, wanting to be closer to the children: the reason shapes the choice. Getting rid of maintenance does not call for the same solution as a change in health.

The best time to decide is while you still have the choice. A sale decided within a few weeks of a hospital stay rarely happens on good terms.

Does it actually free up money?

Net proceeds. Sale price, minus the mortgage balance, broker compensation (plus GST and QST), a new certificate of location if yours is out of date, the mortgage discharge, the penalty if you repay a closed mortgage before the end of its term, preparation and moving. In Quebec, the buyer chooses and pays the notary for the deed of sale. Each line is covered in the real cost of selling a house in Quebec.

Capital actually freed. Net proceeds, minus the full cost of what comes next. If you buy: price, welcome tax, notary, inspection, tax adjustments and moving. If you rent, almost all of the net proceeds stay invested.

The monthly picture. Compare what the house costs you today (taxes, insurance, heating, maintenance, snow removal) with what the next place will cost. A smaller condo, with its condo fees, can cost nearly as much per month as a paid-off house.

Starting point: an estimate of your property’s value.

The options, side by side

The condo

Since August 14, 2025, a condo seller must give the buyer a certificate from the syndicate attesting to the condition of the co-ownership, which the syndicate must provide within 15 days of the request. It shows, among other things, the contingency fund and what the fund study recommends, the contributions required from co-owners over three years, the major work planned over ten years with its estimated cost, and pending lawsuits. Read it alongside the minutes of recent meetings: an underfunded contingency fund points to special assessments. More on that in condo fees, the silent killer.

The rental apartment

Renting keeps your capital invested and ends the upkeep. If you refuse a rent increase, it is up to the landlord to apply to the Tribunal administratif du logement (TAL). The exception: in a building constructed five years ago or less, Section F of the lease can remove your right to have the rent fixed. For buildings ready for occupancy since February 21, 2024, the landlord must also write in the maximum rent that can be charged over those five years.

And if your health later requires a move to a CHSLD or to an RPA that provides the care you need, the law lets you terminate the lease, with two months' notice for a lease of 12 months or more.

The private seniors’ residence

The name “private seniors’ residence” is reserved for residences holding a certificate of compliance issued by the Government of Québec: check the register on Québec.ca. The lease is the TAL’s mandatory form, with Annex 6, which lists the services offered and the cost of each personal service, such as help with bathing. Compare residences annex against annex: two similar rents can cover very different services.

Staying home

Sometimes the best decision is not to sell. A ramp, an adapted bathroom and home services can cost less than a move. Quebec’s refundable tax credit for home-support services for seniors is for people 70 and over, whether owners, tenants or RPA residents: 40% of eligible expenses in 2026, with a ceiling and a reduction based on family income. Federally, the home accessibility tax credit applies to people 65 and over, on up to $20,000 of expenses per year. Confirm your eligibility with Revenu Québec and the Canada Revenue Agency (CRA).

Taxes: the sale, then the money

Principal residence. If the house was your principal residence for every year you owned it, the gain is generally exempt. You still have to report the sale: Schedule 3 and Form T2091(IND) federally, Form TP-274-V in Quebec. Only one property per family unit can be designated for a given year: if you also own a cottage, see a tax professional before choosing.

Income from the capital. Invested outside a registered account, the sale proceeds produce interest, dividends or capital gains that add to your net income. Above $95,323 of net income in 2026, Old Age Security (OAS) is clawed back at 15% of the excess. On a modest income, that investment income can also reduce the Guaranteed Income Supplement (GIS).

According to the CRA, income earned in a TFSA and withdrawals from it do not affect OAS or the GIS. The annual limit is $7,000 in 2026, and unused room carries forward: up to $109,000 for someone eligible since 2009 who has never contributed, and each spouse has their own room. For the rest, see your financial planner before the sale.

Sell first or buy first

Selling first gives you an exact figure before committing elsewhere. To avoid being without a home, negotiate a later signing date, or occupancy after the sale: the promise to purchase then sets a monthly compensation paid to the buyer, which should include heating, electricity and maintenance.

Buying first gives you time to find the right place, with the risk of carrying two properties. A bridge loan can cover the gap, but lenders generally require a firm sale, with conditions waived. Also check whether your mortgage is portable.

Decluttering and preparing the house

Thirty years of belongings are not sorted in a weekend. Start months ahead, one room at a time, and let your children choose what they want to keep. After that, paint, small repairs and a deep clean pay off more than renovations: see how to prepare your home for sale.

Have the certificate of location checked early, and complete the Declarations by the seller in good faith, water infiltration and past work included: that is what protects you after the sale.

Family, and protection against pressure

Involve the people close to you, but the decision is yours. Be wary of a rushed sale “for your own good”, a request to lend part of the proceeds, or a suggestion to add a name to a title or an account. You can always meet your notary alone. If you face pressure, the Mistreatment Helpline (Ligne Aide Maltraitance Adultes Aînés) answers at 1-888-489-2287, every day from 8 a.m. to 8 p.m., confidentially.

This is also the time to review your will, power of attorney and protection mandate with a notary. A power of attorney works while you are able to decide. The protection mandate takes over in case of incapacity, once it has been homologated by the court.

Thinking about selling the family home in the next year or two? Write to me. We will build the net figure together and compare the options, before any decision.

Georges Matar

Residential Real Estate Broker · RE/MAX DU CARTIER INC.

Contact Georges