How do I downsize from a detached Markham home to a luxury condo?Start with the numbers, then the layout, then the timing. If your detached home has been your principal residence for every year you owned it, the gain on the sale is generally exempt from capital gains tax under the principal residence exemption, but you must still report the sale on your tax return. On the purchase side, budget for Ontario land transfer tax, about $20,475 on a $1,200,000 condo, plus legal fees and moving costs. Look for a layout that fits how you live, often two bedrooms plus a den, and review the condo’s fees and reserve fund. Selling first usually gives you the clearest picture of the equity you can release.
Many owners in Unionville, Angus Glen and other established Markham neighbourhoods bought decades ago. Their children have moved out, the stairs and the yard feel like more work each year, and they want a home with less upkeep, without leaving the community they know.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, helps downsizers map out both sides of the move, from the sale of the family home to the condo purchase, so they know how much equity will be freed up before they commit to either.
Step 1: Understand your equity and taxes
The principal residence exemption usually means no capital gains tax on the sale of a home you have lived in as your main home for every year you owned it. There are important details:
- You must report the sale on your tax return for the year you sell, even when the gain is fully exempt.
- Only one property per family can be designated as the principal residence for each year. If you also own a cottage or rental, the exemption may not cover everything.
- Part of the home used for income, such as a rented basement, can affect the calculation.
Speak to an accountant before you list, especially if you own more than one property. For a deeper look at the money side, see downsizing in Markham: the complete financial framework.
Step 2: Budget the full cost of the move
| Cost | Example on a $1,200,000 condo |
|---|---|
| Ontario land transfer tax | About $20,475 |
| Legal fees and title insurance | Varies by lawyer |
| Selling costs on your home | Including REALTOR® commission, which is fully negotiable |
| Moving, storage and new furniture | Varies |
| Monthly condo fee | Varies by building and size |
Land transfer tax is calculated using Ontario’s provincial rates. Markham does not charge a municipal land transfer tax.
The equity you release is roughly your sale price, minus selling costs and any mortgage, minus the condo price and buying costs. Many downsizers put part of that difference toward retirement savings or helping family. A financial planner can help you decide how to use it.
Planning your next chapter in Markham?
Michael John Lau can estimate your home’s value, compare condo options and plan the timing of both moves.
Book a downsizing consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Step 3: Choose the right kind of condo
Luxury condo living in and near Markham comes in a few forms:
- Boutique low-rise and mid-rise buildings with fewer units, larger suites and a quieter feel.
- Full-service high-rise buildings with concierge, gym and amenities, often near Highway 7 and Markham Centre.
- Condo townhouses and bungalow-style condos for those who still want a front door at ground level.
Visit buildings at different times of day. Notice the lobby, the elevators, how busy the parking garage is and how residents use the amenities. A building that feels calm and well run on a weekday evening is often a sign of good management. The status certificate will tell you about the finances.
For more options, see senior downsizing in Markham: a patient, practical guide.
Step 4: Layout priorities that matter
| Feature | Why it matters to downsizers |
|---|---|
| Two bedrooms plus a den | Room for guests, grandchildren or a home office |
| Split bedroom layout | Privacy when family stays over |
| Generous storage and a locker | Easier transition from a large house |
| Two parking spots, if needed | Not every building offers a second spot |
| Accessible design | Step-free entry, wide halls and elevators for the long term |
| Outdoor space | A larger balcony or terrace for those leaving a garden |
Always have your lawyer review the status certificate, which shows the reserve fund, the budget and building rules on pets, renovations and rentals.
Step 5: Time the sale
Markham is a buyer’s market in fall 2026, with about 9 months of inventory in September, according to Wahi. That cuts both ways for downsizers: your detached home may take longer to sell, but you also have more choice and room to negotiate on the condo.
- Sell first to know your exact budget, and negotiate a longer closing to give yourself time to buy.
- Prepare the home well. Long-held homes often benefit from paint, repairs and decluttering before listing.
- Consider the season. Spring usually brings more buyers for family homes, which can matter for larger detached properties.
For homes in Markham’s best-known heritage village, see Unionville real estate.
Step 6: Make the move itself easier
The practical side of downsizing is often harder than the financial side. Decades of belongings rarely fit into a condo, and deciding what to keep can be emotional.
- Start early. Sort one room at a time, months before you list.
- Measure first. Get the condo floor plan and measure the furniture you want to keep.
- Involve family in decisions about heirlooms and keepsakes.
- Book movers early, especially for spring and summer moves. See local moving companies in Markham.
- Stay connected. Choose a building close to your doctor, place of worship, friends and the shops you use today, so the move feels like a new chapter, not a fresh start.
Ultimately, the decision is yours. The goal is to make sure you have all the information.
Downsizing is as much about the next chapter as the numbers, so it helps to plan both together. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Do I pay capital gains tax when I sell my Markham home?
Usually not, if the home was your principal residence for every year you owned it. You must still report the sale on your tax return. Speak to an accountant if you own more than one property or rented part of the home.
How much is land transfer tax on a $1.2 million condo in Markham?
Ontario land transfer tax on a $1,200,000 purchase is about $20,475. Markham does not charge a municipal land transfer tax.
What condo layout is best for downsizers?
Many downsizers choose two bedrooms plus a den, with good storage, a locker and accessible design. A split bedroom layout gives privacy when family visits.
Should I sell my house before buying a condo?
In today’s slower Markham market, selling first gives you the clearest picture of your budget. A longer closing on your sale can give you time to find the right condo.
What should I check before buying a luxury condo?
Review the status certificate with your lawyer, including the reserve fund, budget, fee history and rules on pets, renovations and rentals. Also check parking, storage and elevator access.
Is it a good time to downsize in Markham?
Markham is a buyer’s market in fall 2026. Your house may take longer to sell, but you have more choice and negotiating room on the condo you buy.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Tax information summarizes the Canada Revenue Agency’s principal residence rules. Land transfer tax is calculated using Ontario’s provincial rates. Market figures are from Wahi’s Markham report of September 26, 2026. Speak to an accountant, lawyer and financial planner about your own situation. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
