Four parts of the housing decision
Ongoing housing expenses
For an owner, include mortgage payments, property taxes, condo or common fees, insurance, maintenance and other regular property costs. For a renter, include rent, tenant insurance and regular fees. Keep utilities in the general retirement budget so they are not counted twice.
When the change happens
A move today affects the plan differently from a move five or ten years from now. Until the transition, the current housing expense continues; after it, the alternative expense takes over.
One-time transition costs
Legal fees, mortgage discharge or prepayment costs, real-estate fees, repairs, buying costs and moving costs can reduce the amount left after a sale.
Money actually added to savings
Home equity is not the same as retirement savings. After debts, costs and a replacement home are considered, only the amount you deliberately set aside should enter the retirement forecast.
A simple timeline
Keep the before and after periods visible.
Use today's dollars for both periods. The current housing expense continues until the selected transition age. At that age, the new monthly expense begins and any confirmed amount enters retirement savings once.
Home value is not spendable retirement money by itself.
An estimated sale price is only the starting point. A mortgage balance, selling and moving costs, and the cost of the next home can all reduce what remains. The Financial Consumer Agency of Canada lists legal fees and mortgage-discharge fees among standard selling costs, with real-estate fees, repairs, inspections, moving and mortgage prepayment penalties as other possible costs.
Tax treatment also depends on the facts. The Canada Revenue Agency explains that a gain is usually exempt when the property was solely your principal residence for every year you owned it, but the sale still has reporting requirements and different rules can apply when a property was used to earn income. Confirm the current rules rather than assuming every sale is tax-free.
The forecast shows financial effects—not the whole decision.
The Home and housing comparison can show:
- the current and alternative monthly housing amounts;
- the age when the entered change begins;
- a confirmed non-negative amount added to retirement savings once; and
- how the two savings paths differ under the same forecast assumptions.
It does not determine:
- what a home will sell for or what rent will be;
- whether a community, home layout or care arrangement will fit;
- exact tax, legal, borrowing or property-transfer results; or
- whether buying, selling, renting, renovating or moving is the right action.
Related questions
A few useful follow-ups.
Which housing expenses belong in the monthly total?
Use the regular costs that continue month after month. Owners can include mortgage payments, property taxes, condo fees, insurance, maintenance and other property costs. Renters can include rent, tenant insurance, parking, storage and regular fees. Keep utilities in the main Expenses section to avoid counting them twice.
Should I assume all sale proceeds are invested?
No. First account for debts, selling and moving costs, the next home and any cash you want to keep available. Enter only the amount you deliberately intend to add to retirement savings.
What if the move is several years away?
Use the age when you expect the change to happen and enter both current and alternative housing costs in today's dollars. Revisit the estimates as the date approaches because prices, rents, mortgage balances and moving costs can change.
Official sources
These sources were reviewed August 2, 2026. Program rules and tax treatment can change; confirm the information that applies when acting.
- FCAC: Selling a home (opens in a new tab)
- CRA: Principal residence (opens in a new tab)
- CMHC: Things to consider before renting (opens in a new tab)
- Canada.ca: Thinking about aging in place (opens in a new tab)
Retired Kevin is not affiliated with or endorsed by these organizations.