Downsizing in Greater Vancouver

Most people who downsize have lived in their home for a long time. The mortgage may be paid off, the kids have moved out, and the stairs, the yard or the upkeep have started to feel like more than they're worth. The move itself is two deals at once: a sale and a purchase. This guide walks through both, in the order the decisions come up.

Sell first or buy first

This is the first real decision, and it shapes everything after it. There's no right answer for everyone. It comes down to how much risk you're comfortable carrying, and on which side.

Sell first

You list the house, accept an offer, and only then shop for the next home with a known budget. You know exactly how much equity you have, and you never own two homes at once.

The risk is on the buying side. If the right place doesn't come up before your sale completes, you may need somewhere to stay for a while: a short rental, family, or a longer completion date negotiated with your buyer. You can ask for a longer completion up front for exactly this reason.

Buy first

You find the next home, then sell. You can take your time choosing where you'll live, and you move once, straight from one home to the other.

The risk is on the selling side. Until the house sells, you're carrying two homes, and you don't yet know your final sale price. People who buy first usually lean on one of two tools:

• A subject-to-sale clause. Your offer depends on selling your current home by a set date. It protects you, but a seller may prefer an offer without it, so it can weaken yours when others are bidding.
• Bridge financing. A short loan that covers the gap between buying and your sale money arriving. See the next section.

One thing that doesn't help here: BC gives home buyers a short window to back out of a signed purchase. You can cancel within 3 business days of acceptance, but you pay the seller a fee of 0.25% of the price, and it's meant for second thoughts, not as a safety net while you sell.⁶

Bridge financing in plain words

A bridge loan lets you use the equity in the home you're selling before that money actually arrives. It's for the days or weeks between your purchase completing and your sale completing.

Here's how it usually works. You have a firm sale: the buyer's subjects are removed. Your purchase completes first, say ten days earlier. Your lender lends you the down payment for the new home for those ten days. When your sale completes, the loan is paid back from the proceeds, along with the interest and any fee.

Three things to know:

• Expect your lender to ask for a firm sale first. A bridge loan covers a known gap between two dates. It isn't usually available while your house is still for sale.
• The cost depends on the lender. Rates, fees and the longest gap they'll cover are set by each lender, so ask yours before you sign anything.
• The cost grows with the gap. A few days of bridge interest is a small line on the statement of adjustments. A few weeks adds up, so keep the gap as short as your two deals allow.

The right-size calculator shows whether your timing needs a bridge, and how much equity you'd be bridging.

Getting the house ready

After decades in one house, the hardest part of selling is usually the stuff, not the paperwork. Starting early makes everything after it easier.

• Sort before you list. Go room by room: keep, give to family, donate, sell, recycle. Measure the next home before deciding which furniture comes with you.
• Fix what a buyer's inspector will find. Leaks, a tired roof, an old electrical panel and missing handrails are what inspectors look for. Fixing them before you list means fewer surprises once an offer comes in.
• Clean and clear rather than renovate. Fresh paint, good light and clear floors help buyers see the space. A big renovation adds months and cost, so talk it through before you start one.
• Gather your papers. Permits for past work, warranty documents, utility costs for the last year, and anything about the roof, furnace or drains. Buyers and their lenders will ask.

Your costs on the sale side are mostly the mortgage payout (if any), commission, and legal or notary fees. Commission isn't set by law: it's in your listing agreement, and GST of 5% is added to it.⁵ Before you sign a listing agreement or share your plans with any Realtor, they must give you BC's Disclosure of Representation in Trading Services, which explains the ways an agent can work with you.⁷

Tax on the sale of your home

If the house was your principal residence for every year you owned it, you generally don't pay tax on the gain. You still have to report the sale on your tax return, on Schedule 3 and Form T2091(IND), to claim the principal residence exemption.⁸ If part of the property was rented out, or you owned another home at the same time, ask an accountant how it applies to you.

Property transfer tax on the next home

BC charges property transfer tax (PTT) when you buy, on the fair market value of the home. As a downsizer you'll pay it on the next home even though you've paid it before. You or your lawyer or notary file the return when the transfer is registered.¹

The first-time buyers' exemption isn't open to you if you've owned a principal residence before.⁴ But there's one exemption many downsizers miss: buying a newly built home. Any Canadian citizen or permanent resident can claim it, whether or not they've owned before.²

Here's what that means at a few prices. A newly built home also carries GST of 5% on the price, so compare the total, not just the tax line.⁵

Moving into a strata

Many downsizers move into a condo or townhouse, which means joining a strata corporation. Instead of doing the roof and the gutters yourself, you pay monthly strata fees and the strata looks after the building. You also share decisions, and costs, with your neighbours.

Before you commit, read what the strata is required to tell you.⁹

Also ask for the minutes of recent council meetings and general meetings, the bylaws and rules, and the financial statements.¹⁰ The minutes are where you'll see what the owners are worried about: a leaking envelope, an elevator near the end of its life, or a levy on the way. Read them, with your Realtor and lawyer, before your subjects come off.

Things that matter most when you're downsizing:

• Pets. Bylaws can limit the number and kind of pets. If you're bringing a dog, check before you write an offer.
• Age. Some buildings restrict who can live there by age. Since November 24, 2022, the only age restriction a BC strata can have is 55 and older.¹¹ If you want that kind of building, or want to avoid one, the bylaws will say.
• Getting around. Elevators, step-free entrances, parking close to the door and storage lockers. How parking and lockers are assigned differs from building to building, so confirm which ones come with the unit.
• The real monthly cost. Strata fees replace some of what you paid for upkeep, but not all. Add property tax, insurance on your unit and utilities to compare fairly with what you spend now.

Timing the two dates

Every sale and purchase has a completion date (money and title change hands) and a possession date (you get the keys), usually a day apart. Downsizing well is mostly about lining these up.

• Same-day or next-day dates mean one move and no bridge, but your movers and both lawyers need to be ready, and any delay on one deal touches the other.
• A few days of overlap (buy completes first) gives you time to move at a gentler pace, and usually needs a short bridge loan.
• A gap (sale completes first) means no bridge, but you'll need somewhere to stay and possibly storage.

Book movers as soon as both deals are firm. End-of-month dates can be harder to book, so ask about mid-month if your dates allow. Tell your home insurer about both dates, and arrange new coverage from the day you own the new place.

Once you've moved, claim the home owner grant on the new home: you apply each year. Seniors can claim a higher amount, called the additional grant. For 2026, the full grant applies to homes assessed at $2,075,000 or less.¹²

Family and estate matters

Downsizing often happens alongside bigger conversations about family and the future. These are worth having early, with the right professionals. This section is a starting list of what to raise with them, not legal or tax advice.

• Your will. Selling one home and buying another can change what your estate holds. In BC, wills are governed by the Wills, Estates and Succession Act.¹⁵ Ask your lawyer or notary whether yours needs updating after the move.
• Who decides if you can't. BC has an enduring power of attorney for your financial and property decisions, and a representation agreement for health and personal care.¹⁴ Having them in place before a move means someone you trust can sign if you're unwell partway through.
• Adding family to title, or helping a child buy. Putting a child on title or gifting part of your equity can affect taxes, your estate and your control of the home. Talk to a lawyer and an accountant before you decide.
• Deferring property tax instead. If you're 55 or older, BC's property tax deferment program lets you defer your annual property tax as a loan against your home, with a lien on title. For taxes deferred from 2026 on, interest is compound rather than simple.¹³ If you're weighing staying put against moving, factor that in.

If your adult children are helping with the move, bring them into the conversation early. It's easier for everyone when the plan, the dates and the numbers are written down in one place.

Read next: the area pages for Surrey, Langley, Burnaby and Coquitlam, with the kinds of homes, transit and services in each.