Blog > How much can I release by downsizing in Markham?
How much can I release by downsizing in Markham?
The gap is the whole point. In August 2026 a Markham detached home averaged $1,611,773 and a condominium apartment $638,332, a difference of roughly $973,000 before costs. Selling costs run about 3% to 6%, and the seller pays no land transfer tax. Three things catch downsizers out: deferred property taxes become due on sale if you have been using York Region's deferral programme; there is no senior exemption from land transfer tax on the home you buy next; and even where the principal residence exemption shelters the entire gain, you must still report the sale, with a late-designation penalty that can reach $8,000.
What Downsizing Actually Releases
| Markham, August 2026 | Average price |
|---|---|
| Detached | $1,611,773 |
| Freehold townhouse | $1,031,119 |
| Semi-detached | $958,133 |
| Condominium townhouse | $812,567 |
| Condominium apartment | $638,332 |
Detached to condominium apartment is roughly $973,000. Detached to freehold townhouse is roughly $581,000. Detached to condominium townhouse is roughly $799,000.
Those are city-wide averages across every Markham neighbourhood, not valuations. A free home evaluation gives the real figure for your own property, and the downsizing page covers how a coordinated sale and purchase is handled. Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, works the real numbers on the actual home rather than the average, because the average is wrong for almost everyone.
From that gross figure subtract selling costs of roughly 3% to 6%, land transfer tax on the purchase, moving costs, and any mortgage prepayment penalty. What remains is the actual number that funds the next stage.
The Three Things That Catch Downsizers Out
1. Deferred property taxes come due on sale
York Region operates a Seniors and Low-Income Tax Deferral Program, administered locally, for homeowners aged 65 or older receiving the Guaranteed Income Supplement, and for low-income persons with disabilities. It defers yearly property tax increases only, not the whole bill, capped so that total deferred plus outstanding taxes cannot exceed 75% of the assessed value. The application deadline is 30 September.
Deferred taxes become due on sale or transfer, except a transfer to a spouse. A homeowner who has been deferring for years will meet that number at closing.
The City of Markham separately runs a Low-Income Seniors Property Tax Assistance Program for owners 65 or older receiving the Guaranteed Income Supplement, providing forgiveness of late payment charges on existing arrears and an interest-free repayment plan.
If either applies to you, ask the City what the payoff figure is before you list, not at closing.
2. There is no senior land transfer tax break
Ontario's land transfer tax exemptions cover certain transfers between spouses, certain transfers to a family business corporation, certain transfers of farmed land between family members, and certain transfers of a life lease from a non-profit or charity.
There is no exemption or refund based on age. The first-time buyer refund does not help a downsizer either, because a downsizer is not a first-time buyer.
One piece of good news specific to this city: Markham has no municipal land transfer tax. A retiree downsizing within Markham pays the provincial tax only. The same person downsizing into a Toronto condominium would pay Toronto's municipal tax on top.
3. You must report the sale even when you owe nothing
The principal residence exemption can shelter the entire gain on a home occupied as a principal residence throughout ownership. It does not remove the reporting obligation.
- Since the 2016 tax year, the disposition must be reported on Schedule 3, with the date of acquisition, proceeds and a description of the property.
- For dispositions from 2017 onward, Form T2091 is also required where the property was not a principal residence for every year of ownership.
- The penalty for a late designation is the lesser of $8,000 or $100 per complete month from the due date.
The capital gains inclusion rate for 2026 is 50%. The proposed increase to two-thirds was cancelled in March 2025, so any source still quoting 66.67% is out of date.
Anyone who rented out part of the home, ran a business from it, or owned a second property during the same years should speak to an accountant. Those situations change the calculation.
Programmes Worth Checking
| Programme | Amount | Who qualifies |
|---|---|---|
| Ontario Senior Homeowners' Property Tax Grant | Up to $500 per year | Age 64 or older at 31 December of the previous year, owning and occupying an Ontario principal residence. Income-tested: full grant to $35,000 single or $45,000 couple, phasing out at $50,000 and $60,000 |
| Ontario Energy and Property Tax Credit | Up to $1,488 for ages 65+ | Part of the Ontario Trillium Benefit. $1,307 maximum for ages 18 to 64. Benefit year July 2026 to June 2027 |
| Ontario Seniors Care at Home Tax Credit | 25% of eligible expenses, maximum credit $1,500 | Age 70 or older, or spouse 70 or older. Maximum eligible expenses $6,000, reducing at 5% of family net income over $35,000 |
| Home Accessibility Tax Credit, federal | Maximum qualifying expenses $20,000 per year | Qualifying individual 65 or older at year end, or eligible for the disability tax credit. May be claimed by a spouse, family member or caregiver |
Two notes. The property tax grant is income-tested, not asset-tested, so a Markham homeowner sitting on a $1.6 million house may still qualify if their income is modest. Many do. And the Ontario Seniors' Home Safety Tax Credit, which still appears widely online, is no longer a live programme.
Sell First or Buy First
The question every downsizer asks, and the seasonal data gives a better answer than a general rule does.
Bridge financing typically runs at prime plus two to three percent, with a setup fee in the range of $200 to $500 and a maximum term commonly around 120 days. Loans above roughly $200,000 or longer than 120 days may require a lien registration, which adds legal cost.
Now put that against how long a sale actually takes. Greater Toronto Area days on market ran 27 to 29 in April, May and June 2026, and 45 in January 2026. A 120-day bridge is comfortable against a 29-day spring market and considerably tighter against a 45-day January one.
Selling first gives certainty about the number and removes the bridge entirely, at the cost of possibly needing interim accommodation. Buying first secures the specific unit, which matters where a particular building or floor plan is the whole point, at the cost of carrying two properties and a bridge.
Michael John Lau's recommendation for most Markham retirees is to sell first unless a specific property is genuinely irreplaceable, because the condominium market currently offers more choice than the detached market does, and because certainty about the proceeds makes every subsequent decision easier.
Choosing the Next Home
Read the condominium fee, in both directions
A fee that looks high is not automatically bad and a fee that looks low is not automatically good. Current Markham condominiums are worth browsing alongside the fee question.
Practitioners quoted in Canadian mortgage trade press describe a general Greater Toronto Area range of roughly 75 to 85 cents per square foot, with fees north of a dollar per square foot warranting a closer look at what is driving them. One broker cautions that 50 cents per square foot in a twenty-year-old building is too low and can signal an underfunded reserve fund.
These are practitioner opinions in a trade publication rather than a statistical benchmark, and they are Greater Toronto Area rather than Markham-specific. The useful insight is the direction: an unusually low fee in an older building is a warning, not a bargain. Have your lawyer read the status certificate and the reserve fund study.
Consider what you are actually buying
- Step-free access and a full bathroom on the entry level, if the plan is to stay for twenty years
- Distance to the hospital and to family, evaluated by actual drive time rather than on a map
- Storage, which is the thing downsizers most consistently underestimate
- Whether the building is rental-heavy, which affects both atmosphere and financing
- Guest parking, if family will visit regularly
Life lease, briefly
A life lease gives the right to occupy a unit for a long period, often for life, but the buyer does not own the property. A non-profit or charitable sponsor retains ownership. On death, inheritors receive the interest but cannot automatically occupy the unit and must apply to the sponsor, whose decision it is.
Life leases are usually priced below comparable condominiums, partly because conventional mortgages are not generally available. Ontario advises anyone considering one to obtain legal advice, because terms vary considerably between agreements.
A Sensible Sequence
- Get the mortgage penalty and any deferred property tax payoff quoted in writing before anything else.
- Get a realistic valuation of your own home, not the city average.
- Work out the net proceeds after selling costs, land transfer tax on the purchase, and moving.
- Speak to an accountant if the home was ever rented, used for business, or held alongside a second property.
- Decide sell-first or buy-first using the actual market pace, not a general rule.
- Start decluttering early. It is the longest task in the project and every downsizer underestimates it.
The full process is in the complete 2026 seller's guide, the costs in What It Costs to Sell a House in Markham, and the timing in Best Time to Sell My House in Markham.
Questions about your own property or timeline? Call Michael John Lau, REALTOR®, at (416) 700-0286 for a direct answer on your street and your situation.
Next Steps
- Downsizing in Markham — How a coordinated sale and purchase is handled.
- Get a free Markham home evaluation — The real number for your own home, not the average.
- Markham condominiums — What the next home actually looks like.
Frequently Asked Questions
How much can I release by downsizing in Markham?
On August 2026 averages, moving from a detached home to a condominium apartment releases roughly $973,000 before costs, or about $581,000 moving to a freehold townhouse. Selling costs of 3% to 6%, land transfer tax on the purchase and moving costs come off that.
Do seniors pay land transfer tax in Ontario?
Yes. There is no exemption or refund based on age, and the first-time buyer refund does not apply to a downsizer. Markham buyers pay only the provincial tax, because Markham has no municipal land transfer tax.
Do I pay tax when I sell my principal residence?
Generally no, where it was your principal residence throughout ownership. But you must still report the sale on Schedule 3, and the penalty for a late designation can reach $8,000. The capital gains inclusion rate for 2026 is 50%.
What happens to deferred property taxes when I sell?
They become due on sale or transfer, except a transfer to a spouse. York Region's deferral programme covers yearly increases only, capped at 75% of assessed value. Ask the City for the payoff figure before listing.
Should I sell my house before buying a condo?
For most Markham retirees, yes, unless a specific property is genuinely irreplaceable. Selling first removes the need for bridge financing and gives certainty about the proceeds. Bridge financing typically runs at prime plus two to three percent for a term commonly capped around 120 days.
Are low condo fees a good sign?
Not necessarily. Practitioners describe roughly 75 to 85 cents per square foot as a general Greater Toronto Area range, and caution that around 50 cents in a twenty-year-old building can indicate an underfunded reserve fund. Have your lawyer review the status certificate and reserve fund study.
Planning the next chapter?
Michael John Lau works the real net number on the actual home, including the costs most downsizing guides leave out, so the decision rests on what a household will genuinely have.
Michael John Lau, REALTOR® · Markham, Ontario · (416) 700-0286
Disclaimer. Michael John Lau is a licensed REALTOR® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Price figures reflect August 2026 board-sourced averages and are city-wide rather than valuations. Programme amounts and eligibility reflect published federal, Ontario, York Region and City of Markham material current to September 2026 and change annually. Michael John Lau is not an accountant, a lawyer or a mortgage broker, and this article is general information rather than tax, legal or financial advice. Eligibility depends on individual circumstances and should be confirmed with the administering body and a qualified professional.