Selling · Retirement · 2026
The big house is worth a lot, costs a lot, and you only use half of it: the question is not whether, but when and for what. Here are the net proceeds, the condo's cost, the reverse mortgage without spin, and the order of steps.
Selling the big house in retirement frees up tax-free capital (principal residence) but costs about 8% of the price in selling and rebuying costs; the decision comes down to three numbers. Net proceeds: a mortgage-free $750,000 house yields about $702,884 after the 5% commission with taxes, the certificate of location and the notary. The cost of what comes next: a $450,000 condo paid cash costs $350 to $600 in condo fees, $250 to $350 in taxes and $40 in insurance a month, against the $700 to $1,200 a month of maintenance, taxes, heating and insurance of the big house; the capital difference, about $250,000, invested at 4% yields about $10,000 a year before tax. Staying: the reverse mortgage (55 and over, up to 55% of value by age and location, no monthly payment) costs a rate 2 to 3 points above ordinary mortgages, and compounded interest doubles the debt in 10 to 12 years; a home equity line or a conventional refinance is cheaper if income allows qualifying. The order: sell first with a long possession date (60 to 90 days), then buy with the funds in hand, or buy with a sale condition when the market allows; avoid a bridge loan lasting months and a pre-construction condo without a firm date.
| Scenario | Capital freed | Monthly housing cost | Note |
|---|---|---|---|
| Keep the big house ($750,000, no mortgage) | $0 | $700 to $1,200 (taxes, heating, maintenance at 1% to 2% of value a year, insurance) | Maintenance and stairs weigh more with age; value exposed to the market |
| Sell and buy a $450,000 condo cash | ≈ $237,134 | $650 to $1,000 (condo fees $350 to $600, taxes, insurance) | Purchase costs ≈ 1.5% plus welcome tax (≈ $9,000 on $450,000 outside Montreal); contingency fund and minutes to read |
| Sell and rent (2 bedrooms, ≈ $1,900 to $2,400 in new buildings) | ≈ $702,884 | $1,900 to $2,400 | No maintenance or market risk; rent follows inflation; the invested capital must produce the rent |
| Stay with a reverse mortgage (up to 55% of value) | Up to ≈ $412,000, lump sum or instalments | No payment; interest compounded at a rate 2 to 3 points higher | Debt doubles in 10 to 12 years; repaid at sale or death; the house stays yours |
Illustrative calculations; exact net proceeds depend on the price obtained (closed sales on the street, not the municipal assessment), commission and costs.
Reserved for those 55 and over (the youngest co-owner), secured by the principal residence, up to 55% of appraised value by age, location and lender; no payment while you live in the house; interest, at a rate 2 to 3 points above an ordinary mortgage, is added to principal every month; the loan is repaid at sale, move or death, and the lender cannot claim more than the value of the house. It suits someone who wants to stay a long time, has no income for a conventional line and accepts leaving less to heirs; it does not suit financing a lifestyle or someone planning to sell within five years, where set-up fees and the higher rate weigh most. Always compare with a home equity line, a conventional refinance (see the mortgage after 60, French) and an outright sale.
Sell first, with possession at 60 or 90 days and, if possible, a temporary occupancy clause after the deed; then buy with the funds in hand, which strengthens the offer and avoids the bridge loan (prime plus 1 to 2 points for months). Buying first is justified when the property is rare (a specific condo, a residence with a waiting list) and with a condition of selling your house; sellers accept it more readily in 2026 than in 2021. The pre-construction condo without a firm delivery date is the most common trap: two years of rent or an unsold house in between.
Not if it was your principal residence for every year of ownership; the gain is exempt, but the sale must be reported.
A rate 2 to 3 points higher than an ordinary mortgage, compounded with no payment, plus set-up fees; up to 55% of value, from age 55.
Most often yes, with a long possession date; buy first with a sale condition when the property you want is rare.
The condo keeps an asset and costs $650 to $1,000 a month; renting frees all the capital and removes maintenance, at $1,900 to $2,400 a month. The answer depends on horizon and heirs.
The numbers of the sale: the cost of selling, the mortgage penalty and the commission calculator.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.