Janelle and her husband, both 68, recently retired and are ready to make the most of their golden years.
They own a condo, which originally they thought would be ideal for retirement. But now, with an active lifestyle, and more time spent babysitting their grandkids, they’re wondering if it actually makes sense to upsize during retirement.
Janelle spent most of her career commuting to an office, while her husband spent long stretches on the road for work. Now that they’re retired, they want to enjoy their home.
Janelle, who recently took up watercolours, wants a space to herself where she can paint, preferably a sunroom overlooking a garden. Her husband wants a ‘man cave’ where he can watch football and Formula One.
A vast majority of Canadians (94%) over 45 agree that aging in place would allow them to maintain independence, comfort and dignity throughout the aging process, according to an Ipsos poll.
For some, that may mean downsizing.
Nearly half (46%) of adults approaching retirement intend to downsize their home within two year of exiting their full-time career, according to a Royal LePage poll. However, 47% of respondents say they will not, which gives some credence to Janelle and her husband’s retirement goals.
But could it make sense for some retired couples? Here’s what Janelle and her husband might want to consider before making a move.
The benefits of upsizing
Upsizing can enhance quality of life, providing more space for family visits or home-based hobbies as many retirees are “realizing their dreams” of spending more time with family and friends and pursuing hobbies.
It allows for flexibility along the continuum of life. It could make sense for multigenerational households, — say, if you’re regularly babysitting your grandchildren — or if your adult children help out with caregiving duties.
It could provide space for a live-in caregiver, or serve as an extra source of income if you rent out a room, basement apartment or garden suite.
The downsides of upsizing
Moving is costly, from selling your home and buying a new one to moving costs themselves, which can range from $600 to $6455, depending on whether you use a professional moving service to relocate either locally or to another province, according to Move Advisor.
You may not net as much from your sale as you hope, meaning you may have to dip into your retirement savings or borrow money to get a bigger home.
Currently, it’s a balanced market nationwide, with only Ontario is considered a buyer’s market according to WOWA. Furthermore, the average home price across Canada has only dipped 1.1% over the past 12 months.
Meanwhile, the prime rate in Canada for a mortgage is 4.95%, thanks to the Bank of Canada’s decision to hold its rate at 2.75%
Even if you buy a big home in a more affordable area, larger homes come with higher utility bills, maintenance and insurance costs.
If you need to hire someone for maintenance and repairs, such as regularly mowing the lawn, you’ll need to account for that in your retirement budget.
While it may be unpleasant to think about, if one spouse dies sooner than expected, or if the grandkids don’t visit as often as you counted on, then a big, empty house could also end up feeling rather lonely.
Key questions to consider before upsizing
Before upsizing, Janelle and her husband may want to answer some key questions:
- Are there other expenses we need to budget for, such as more furniture to fill a larger home?
- Can we afford this while still preserving a financial cushion for emergencies and health care?
- Are we prepared for the extra work (such as maintenance) that comes with a larger home?
- Will we still want or be able to live in a bigger space in 10 to 15 years?
- Is this larger home suitable to an aging-in-place lifestyle (e.g., are there too many stairs)?
- How will this move affect our estate plan and heirs?
Working with a financial advisor to run the numbers can help couples like Janelle and her husband determine whether upsizing would be the right move for their retirement years.
Sources
1. Ipsos: Nearly all Canadians (96%) Aged Forty-Five and Older Say Aging in Place Enables the Preservation of Independence and Dignity (May 16, 2025)
2. Royal LePage: The new real estate reality for retirees: Exiting the workforce with mortgage debt (May 27, 2025)
3. Move Advisor: What’s the Cost of Moving Across Canada?, by Joshua Green (May 27, 2025)
3. WOWA: Canadian Housing Market Report
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
