Deciding whether to sell the family home is a major milestone, especially as you enter retirement. The choice is about more than just property—it’s about your comfort, financial security, and the next chapter of your life. Here are key considerations for retirees weighing this important decision.

Evaluating your retirement lifestyle

Retirement often brings changes in daily routines, priorities, and needs. Ask yourself:

• Does your current home suit your mobility and accessibility requirements?
• Is maintaining a larger property becoming burdensome?
• Do you like having the extra space for guests, a craft room, grandkids or your newly adopted pet(s)?
• Would a smaller home, condo, or retirement community better support your lifestyle?

Reflecting on these questions can help clarify whether your home still fits your retirement goals.

Financial Considerations

Selling your home can unlock equity to support your retirement plans—whether that’s travel, hobbies, or simply peace of mind. Before making a decision:

• Review the current real estate market with a trusted real estate agent to understand your home’s value.
• Consider the costs of selling, including realtor commissions, legal fees, moving expenses, and any necessary repairs or upgrades.
• Create a budget for your next living arrangement, factoring in ongoing costs like property taxes, utilities, and maintenance.
• If you have owned your home for a long time, a smaller house may not cost less in the current real estate market. 

Mortgage and Tax Implications

If you still have a mortgage, check for any penalties or fees associated with early repayment. In Canada, the sale of your primary residence is generally exempt from capital gains tax, but it’s wise to confirm your eligibility and keep records of your ownership and improvements.

One rule of thumb is if the interest rate on your mortgage is less than what your investment portfolio is earning, you're probably better off keeping the mortgage.

The flip side is that your mortgage is probably your largest single monthly expense, and by paying off your home you lower your monthly expenses significantly.

Downsizing and Relocation Options

Many retirees choose to downsize, moving to a smaller home, condo, or retirement community. Consider:

• Proximity to family, friends, healthcare, and amenities
• Accessibility features and future-proofing your living space
• The emotional impact of leaving a long-time home and neighbourhood

Take time to visit potential new homes and envision your life in a new setting, while weighing the benefits of your current home.

Emotional Well-Being

Selling the family home can be an emotional process, filled with memories and transitions. Allow yourself time to reflect and seek support from loved ones or professionals if needed. 

If you’re considering selling your family home as part of your retirement plan, reach out to a trusted advisor for personalized advice. They will be able to help you understand your options, connect you with trusted real estate professionals, and guide you through every step of the process.