# Downsizing in Etobicoke: Land Transfer Tax and Moving Costs

> Downsizing in Etobicoke means two land transfer taxes. See what selling a W08 house and buying a condo costs, next to staying. Free estimate, no sales pressure.

URL: https://reversemortgageetobicoke.ca/guide/downsizing-etobicoke-land-transfer-tax/

Decision Guide

# Downsizing in Etobicoke: Land Transfer Tax and Every Other Cost of Moving

A worked illustration with September 2026 TRREB benchmarks: what selling an Etobicoke house and buying a condo costs, and what staying with a reverse mortgage costs instead.

Checked October 16, 2026 · about 5 minutes to read · published by Dominion Lending Centres Homestead Financial

In short

Downsizing in Etobicoke means paying both Ontario's land transfer tax and Toronto's municipal land transfer tax on the condo you buy: $17,262 in total on a $607,800 condo. With commission, HST and legal fees, selling a $1,623,000 house and buying that condo costs about $85,000 to $113,000 before movers.

[Get a free estimate for your own Etobicoke home](https://reversemortgagebroker.ca/estimate/?utm_source=reversemortgageetobicoke&utm_medium=satellite&utm_campaign=downsizing-etobicoke-land-transfer-tax). No cost · No credit check · No sales pressure.

On this page

1.  [Why do Etobicoke buyers pay two land transfer taxes?](#why-do-etobicoke-buyers-pay-two-land-transfer-taxes)
2.  [What would downsizing from a W08 house to a condo cost?](#what-would-downsizing-from-a-w08-house-to-a-condo-cost)
3.  [How much money would the move free up?](#how-much-money-would-the-move-free-up)
4.  [Does a first-time buyer refund lower the tax?](#does-a-first-time-buyer-refund-lower-the-tax)
5.  [What does a reverse mortgage cost by comparison?](#what-does-a-reverse-mortgage-cost-by-comparison)
6.  [Which choice fits which situation?](#which-choice-fits-which-situation)

[ReverseMortgageEtobicoke.ca](/) puts real numbers on downsizing in Etobicoke, land transfer tax included, so you can weigh a move against staying in your home. Etobicoke is part of the City of Toronto, so a buyer here pays two land transfer taxes, Ontario’s and Toronto’s. Every figure below is an illustration built on September 2026 TRREB benchmark prices, with each assumption labelled.

## Why do Etobicoke buyers pay two land transfer taxes?

Etobicoke buyers pay two land transfer taxes because Etobicoke has been part of the City of Toronto since 1998. Ontario charges its tax on every home purchase in the province, and Toronto adds its own municipal land transfer tax on top. Up to $2 million, the two use the same brackets, so the two bills are equal.

| Part of the price | Ontario rate | Toronto rate |
| --- | --- | --- |
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% | 2.5% |
| Over $3,000,000 | 2.5% | 4.40% rising to 8.60% |

These rates apply to a home with one or two single-family residences ([Ontario](https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax); [City of Toronto, from April 1, 2026](https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rates-and-fees/)). Toronto also charges an administration fee of $102.56 plus HST.

## What would downsizing from a W08 house to a condo cost?

For an illustration, selling a house at the W08 detached benchmark of $1,623,000 and buying a W06 condo at the $607,800 benchmark costs about $85,000 to $113,000 before movers. Land transfer tax on the condo is $17,262 of that. The rest is real estate commission, HST on the commission and legal fees on both sides.

W08 covers central Etobicoke communities such as Kingsway South, Edenbridge-Humber Valley and Islington-City Centre West. W06 is the lakeshore: Mimico, New Toronto, Long Branch and Alderwood ([TRREB Market Watch, September 2026](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf)).

| Cost (illustration) | Buy a W06 condo at $607,800 | Buy a W08 condo at $531,000 |
| --- | --- | --- |
| Commission, 3.5% to 5% of $1,623,000 | $56,805 to $81,150 | $56,805 to $81,150 |
| HST at 13% on the commission | $7,385 to $10,550 | $7,385 to $10,550 |
| Legal fees, sale and purchase | about $3,600 | about $3,600 |
| Ontario land transfer tax | $8,631 | $7,095 |
| Toronto land transfer tax | $8,631 | $7,095 |
| Total before movers | $85,052 to $112,562 | $81,980 to $109,490 |

The assumptions: commission is negotiated, so the table assumes 3.5% to 5% plus HST as an illustration only. Legal fees are assumed at about $1,800 for each side. Movers, cleaning, storage and any weeks of paying for two homes vary too much to estimate, so they’re left out.

## How much money would the move free up?

In the same illustration, buying the $607,800 W06 condo frees about $903,000 to $930,000 before movers, if the house has no mortgage. That is the $1,015,200 gap between the sale and the purchase, minus the costs above. Buying the $531,000 W08 condo instead frees about $983,000 to $1,010,000.

Many central Etobicoke owners have no mortgage left. In 2021, only 44.2% of owners in Kingsway South and 41.1% in Edenbridge-Humber Valley had one ([City of Toronto Neighbourhood Profiles, 2021 Census](https://ckan0.cf.opendata.inter.prod-toronto.ca/dataset/6e19a90f-971c-46b3-852c-0c48c436d1fc/resource/19d4a806-7385-4889-acf2-256f1e079060/download/nbhd_2021_census_profile_full_158model.xlsx)).

The condo brings new monthly costs. Condo fees are added to the property tax, insurance and upkeep you already pay. The [Kingsway page](/service-areas/the-kingsway/) and the [Humber Bay Shores page](/service-areas/humber-bay-shores/) show values at both ends of this move.

## Does a first-time buyer refund lower the tax?

No. Toronto’s refund of up to $4,475 and Ontario’s refund of up to $4,000 are for first-time buyers only. To claim Toronto’s, you must never have owned a home anywhere. Someone selling an Etobicoke house has owned a home, so the full $17,262 on a $607,800 condo is payable.

Both refunds are described on the [City of Toronto](https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rebate-opportunities/) and [Ontario](https://www.ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers) pages.

## What does a reverse mortgage cost by comparison?

A reverse mortgage on the same Etobicoke house has one-time costs of about $2,000 to $3,500 and no land transfer tax, because nothing is bought or sold. The larger cost is interest, added to the balance over time at 6.23% to 6.94% (advertised 5-year fixed rates across the four lenders, checked September 17, 2026).

The amounts are large on a W08 house. For an illustration, at the $1,623,000 benchmark, an owner aged 65 could qualify for up to about $820,000, and an owner aged 75 for up to about $937,000. You take only the money you need, and interest is charged only on money you take.

There are no required monthly mortgage payments. You keep paying the house’s property taxes, insurance and upkeep.

Your equity isn’t certain to shrink. The balance grows with interest, yet a rising home value often makes up part or all of that growth. Prices can also fall: the W08 detached benchmark was down 1.46% over the year to September 2026 ([TRREB](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf)).

Run your own figures in the [Etobicoke reverse mortgage calculator](/tools/reverse-mortgage-calculator-etobicoke/).

## Which choice fits which situation?

Neither choice suits everyone. Selling fits you if you want less house to look after, a home without stairs or money for other plans. A reverse mortgage fits you if you want to stay in your home and need money for care, repairs or family. You can also do both, using a reverse mortgage to help buy the smaller home.

The tax side changes too. A lower-value condo usually carries a lower property tax bill, and the [Etobicoke property tax guide for seniors](/guide/etobicoke-property-tax-seniors/) shows the 2026 rate.

If you buy before you sell, a reverse mortgage can help with the purchase once your sale is firm, meaning the agreement is signed and every condition is cleared.

Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada and also arranges home equity lines of credit and regular mortgages. You get every lender compared, and the best deal for your home and goals, by email. [Read how the broker works](/etobicoke-mortgage-broker/).

## The bottom line

Selling an Etobicoke house and buying a condo here costs tens of thousands of dollars up front, and roughly 15% to 20% of that is the two land transfer taxes. A reverse mortgage costs about $2,000 to $3,500 to set up, then interest builds over time. Which one fits depends on whether you want to move, not on the numbers alone.

[Get your free estimate](https://reversemortgagebroker.ca/estimate/?utm_source=reversemortgageetobicoke&utm_medium=satellite&utm_campaign=downsizing-etobicoke-land-transfer-tax) to see the figures for your own Etobicoke home. There's no cost and no sales pressure.

## Etobicoke Homeowners Also Ask

**Is there land transfer tax on a reverse mortgage?**

No. Land transfer tax is charged when a property is bought. With a reverse mortgage you keep the home and nothing changes hands, so neither Ontario's tax nor Toronto's applies.

**Do I pay land transfer tax when I sell my Etobicoke house?**

No. The buyer pays land transfer tax. As a downsizer, you pay it on the condo or smaller home you buy, not on the house you sell.

**Can a reverse mortgage help me buy a smaller home?**

Yes. The money from your sale or savings covers most of the price, and a reverse mortgage on the new place pays the rest. You must live in that home as your main residence, and every owner on title has to be at least 55.

If the new home is a condo, the lender also reviews the building. The [Etobicoke condo guide](/reverse-mortgage-condo-etobicoke/) explains what lenders look at.

[

Where this fits

Reverse mortgages in Etobicoke

What an Etobicoke home could give you, by TRREB district, with every reverse mortgage lender in Canada compared for you, free.

Go to the page

](/)

## Related Etobicoke guides

-   [Etobicoke Property Tax for Seniors: Due Dates, Relief Programs and Grants](/guide/etobicoke-property-tax-seniors/)
-   [Long-Term Care in Etobicoke: The Homes, Wait Lists, 2026 Costs and Your House](/guide/long-term-care-etobicoke/)

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## Sources

Numbers last checked October 16, 2026.

1.  [Ontario, Calculating land transfer tax (updated April 22, 2026)](https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax)
2.  [City of Toronto, Municipal Land Transfer Tax rates and fees (modified April 7, 2026)](https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rates-and-fees/)
3.  [City of Toronto, MLTT rebate for first-time buyers (modified December 18, 2025)](https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rebate-opportunities/)
4.  [Ontario, Land transfer tax refunds for first-time homebuyers (updated February 10, 2026)](https://www.ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers)
5.  [TRREB Market Watch, September 2026](https://trreb.ca/wp-content/files/market-stats/market-watch/mw2609.pdf)
6.  [City of Toronto, 2021 Neighbourhood Profiles (158-neighbourhood model)](https://ckan0.cf.opendata.inter.prod-toronto.ca/dataset/6e19a90f-971c-46b3-852c-0c48c436d1fc/resource/19d4a806-7385-4889-acf2-256f1e079060/download/nbhd_2021_census_profile_full_158model.xlsx)

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Free reverse mortgage estimate (no sales pressure): https://reversemortgagebroker.ca/estimate/

Operated by Dominion Lending Centres Homestead Financial, a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario, brokerage licence #11711. Independently Owned and Operated. ReverseMortgageEtobicoke.ca is a website of Dominion Lending Centres Homestead Financial, not a separate brokerage. Richard Hopkins, Mortgage Broker, licence M16000896.