ReverseMortgageHamilton.ca lays out the real numbers behind downsizing in Hamilton, so a homeowner aged 55 or older can compare moving with staying. Selling a larger home and buying a smaller one frees up money, but the costs of the move come off the top first.
How much does it cost to sell and buy in Hamilton?
For an illustrative move, selling a Hamilton Mountain home at the district’s 12-month average of $684,102 and buying a townhouse, condo or semi at September 2026’s median of $565,000 costs about $47,800. Commission and the HST on it are the biggest items, followed by Ontario land transfer tax on the purchase.
| Cost | How it’s worked out | Amount |
|---|---|---|
| Real estate commission | 4.5% of $684,102 | $30,785 |
| HST on the commission | 13% of $30,785 | $4,002 |
| Ontario land transfer tax | On a $565,000 purchase | $7,775 |
| Legal fees to sell | Estimate | $1,200 |
| Legal fees to buy | Estimate | $1,500 |
| Movers | Estimate | $2,500 |
| Total | $47,762 |
The $684,102 is the Hamilton Mountain average sale price for the 12 months to September 2026, and the $565,000 is the September 2026 median for townhouses, condos and semis (Cornerstone Association of REALTORS). Commission is negotiable, and 4.5% is this example’s assumption. The legal and moving figures are estimates.
How the land transfer tax is worked out
Ontario’s land transfer tax on a $565,000 home is $7,775. That’s 0.5% of the first $55,000 ($275), 1% from $55,000 to $250,000 ($1,950), 1.5% from $250,000 to $400,000 ($2,250), and 2% on the last $165,000 ($3,300), using the Government of Ontario’s land transfer tax rates.
Hamilton buyers pay only the provincial tax. Toronto is the only city in Ontario that charges its own land transfer tax.
What’s left after the move
The price difference is $119,102, which is $684,102 minus $565,000. After about $47,800 in costs, about $71,300 would be left to use. That’s the money downsizing frees up in this example, before anything is spent on the new home.
What is the Hamilton market like for sellers right now?
Hamilton sales fell 22.6% in September 2026 compared with a year earlier, homes took 46 days on market, and there were 4.8 months of supply. Buyers have time to choose, and sellers may wait longer for the price they want. Prices were lower too: the median sale price fell 8.9% in a year.
Months of supply means how long it would take to sell every listed home at the current pace of sales. The figures come from the Cornerstone Hamilton Monthly Indicators for September 2026. The Hamilton home prices update for September 2026 has more detail by district.
How does the cost of moving compare with a reverse mortgage?
The roughly $47,800 spent on moving is about what a $150,000 reverse mortgage at 6.94% would add in interest over a little more than four years. Over five years, that same $150,000 would grow by about $61,000. The moving costs are paid once, while reverse mortgage interest keeps being added for as long as the mortgage lasts.
| After | Balance on $150,000 at 6.94% | Interest added |
|---|---|---|
| 1 year | $160,600 | $10,600 |
| 2 years | $171,900 | $21,900 |
| 3 years | $184,100 | $34,100 |
| 4 years | $197,100 | $47,100 |
| 5 years | $211,000 | $61,000 |
This table is illustrative. It uses the highest advertised 5-year fixed rate on September 17, 2026, interest added twice a year and nothing repaid. Advertised rates ran 6.23% to 6.94% that day.
What staying keeps
Staying keeps the home and its value. The balance grows with interest, yet a rising house price often makes up part or all of that; on average, borrowers in Canada end up keeping around half of their home’s value. Growth isn’t guaranteed: the Hamilton Mountain average fell 5.0% in the past year.
There are no required monthly mortgage payments with a reverse mortgage. Property taxes, insurance and upkeep stay yours. When the mortgage becomes due, you can never owe more than your home is worth, if taxes, insurance and repairs have been taken care of.
How much each route provides
The two routes provide different amounts. In this example, downsizing leaves about $71,300. On a $684,102 home, a reverse mortgage could provide up to about $346,000 at 65 and up to about $395,000 at 75, and you only take, and pay interest on, what you need.
| District | Average sale price | At 65 | At 70 | At 75 |
|---|---|---|---|---|
| Hamilton Centre (lower city) | $499,000 -5.0% in a year | $252,000 | $264,000 | $288,000 |
| Hamilton East (lower city) | $546,000 -7.9% in a year | $276,000 | $289,000 | $315,000 |
| Hamilton West (lower city) | $698,000 -3.6% in a year | $353,000 | $369,000 | $403,000 |
| Hamilton Mountain | $684,000 -5.0% in a year | $346,000 | $362,000 | $395,000 |
| Stoney Creek | $766,000 -5.5% in a year | $387,000 | $405,000 | $442,000 |
| Glanbrook (Binbrook, Mount Hope) | $771,000 -9.2% in a year | $390,000 | $407,000 | $445,000 |
| Dundas | $917,000 -5.3% in a year | $464,000 | $485,000 | $530,000 |
| Waterdown | $931,000 -3.3% in a year | $471,000 | $492,000 | $538,000 |
| Ancaster | $1,083,000 -6.3% in a year | $548,000 | $573,000 | $626,000 |
| Flamborough (rural) | $1,223,000 -1.8% in a year | $618,000 | $647,000 | $707,000 |
Average sale price, all home types, over the 12 months to September 2026: Cornerstone Association of REALTORS (ITSO data). Amounts use about 50.5% of the value at 65, 53% at 70 and 58% at 75, the ceilings on the market's highest-lending products. Prices and amounts are rounded to the nearest $1,000. Your own home and the appraisal set the real figure.
What matters besides the money?
Where you live affects more than your bank balance. A move across the city can mean a new family doctor, a longer drive for your children or grandchildren, new neighbours and a different HSR route. Writing these down next to the money figures gives a fuller picture before any decision is made.
A Hamilton senior’s annual HSR pass is $475 for riders 65 and older, and riders 80 and older travel free with a Golden Age PRESTO card (City of Hamilton, HSR fares). A home near a good bus route helps if driving stops.
The comparison is free
Neither route is right for everyone, and sometimes the answer is that selling fits better. Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada and lays out staying and moving in writing, at no cost to you. The options arrive by email, so your family can read them too. The costs of a reverse mortgage in Hamilton and the Hamilton reverse mortgage calculator are good places to start.
The bottom line
In this illustrative Hamilton example, downsizing costs about $47,800 and leaves about $71,300 to use. A $150,000 reverse mortgage at 6.94% would add a similar amount of interest in a little over four years, while you stay in your home. Which fits depends on your home, your needs and where you want to live.
Get a free estimate for your Hamilton home. It costs nothing, and there is no sales pressure.