BC Move-Down Calculator
Three steps: (1) net proceeds from selling your current home, (2) a Principal Residence Exemption tax check, (3) the full cost of the smaller next home (price plus purchase costs). The cash freed up is the bottom-line number.
Your downsize frees $476,162 in liquid equity (net proceeds $1,298,162 minus the smaller next home's price and purchase costs).
1 · Your current home
What the larger home actually nets you at completion — sale price less the mortgage payout and every selling cost.
- Net proceeds from the sale
- $1,298,162
- Sale price
- $1,600,000
- Less: mortgage payout (balance + penalty)
- −$252,813
- Less: realtor commission
- −$44,500
- Less: GST on commission (5%)
- −$2,225
- Less: legal / notary
- −$800
- Less: tax / strata / utility adjustments
- −$1,500
2 · The tax question: does the Principal Residence Exemption apply?
Whether the gain on the home you’re selling is tax-free decides whether the net proceeds above are really the equity you free up.
3 · Your next, smaller home
The price of the smaller home and the cost of buying it come off your net proceeds. A mortgage on the new home frees more cash up front — at the price of re-leveraging.
- Cash freed up — equity in hand
- $476,162
- Net proceeds from the sale
- $1,298,162
- Less: price of the next home
- −$800,000
- Less: purchase costs on the next home
- −$22,000
Estimate only. Confirm with a licensed professional before relying on this number.
Not tax advice. CRA treatment of capital gains and the Principal Residence Exemption depends on your specific situation — speak with a CPA.
Show the math11 steps
| Step | Amount |
|---|---|
| Current home sale price | $1,600,000.00 |
| Less: mortgage balance payout | -$250,000.00 |
| Less: prepayment penalty (3-month interest OR IRD; ask lender) | -$2,813.00 |
| Less: realtor commission (Bronson’s structure; negotiable) | -$44,500.00 |
| Less: GST on commission (5%) | -$2,225.00 |
| Less: legal / notary discharge fee | -$800.00 |
| Less: property-tax / utility / strata adjustments to buyer | -$1,500.00 |
| Net proceeds from the sale | $1,298,162.00 |
| Less: price of the next, smaller home | -$800,000.00 |
| Less: purchase costs on the next home (PTT + legal + moving) | -$22,000.00 |
| Cash freed up — equity in hand after the move | $476,162.00 |
| Total | $476,162.00 |
Computed from the BC Real Estate Codex · CC BY 4.0
The bottom line
Downsizing from a $1,600,000 home to a $800,000 home frees up roughly $476,162 in cash. That assumes you pay cash for the smaller home; taking a mortgage on it would free up more cash now in exchange for a monthly payment.
Worked example — Fort Langley detached to a Walnut Grove townhouse
A couple sells a Fort Langley detached at $1,600,000 with a $250,000 mortgage balance left, fixed at 4.5%. The three-months’-interest estimate is $250,000 × 4.5% × ¼ = $2,813 — though on a fixed mortgage the lender will charge the greater of that and the IRD, so they call to confirm. Bronson’s commission structure on $1.6M is 7% × $100K + 2.5% × $1.5M = $44,500, and GST on that is $2,225. Legal is $800, prorated adjustments $1,500.
Net proceeds: $1,600,000 − ($250,000 + $2,813) − ($44,500 + $2,225 + $800 + $1,500) = $1,298,162. The home was their principal residence for all 14 years they owned it, so the PRE applies and that whole gain is tax-free — the $1,298,162 really is theirs.
They buy a Walnut Grove townhouse at $800,000, paying cash. Purchase costs — Property Transfer Tax, legal, and the move — come to about $22,000. Cash freed: $1,298,162 − $800,000 − $22,000 = $476,162. The gross calculation ($1.6M − $800K = $800,000) is $323,838 higher. Commission, GST, the prepayment penalty, and the townhouse’s purchase costs account for the full difference.
Related
Verified sources (4)· re-verified 2026-05-09Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- CRAretrieved 2026-05-09Income Tax Folio S1-F3-C2: Principal Residencehttps://www.canada.ca/en/revenue-agency/services/forms-publications/publications/s1-f3-c2/income-tax-folio-s1-f3-c2-principal-residence.html
- CRAretrieved 2026-05-09Reporting the sale of your principal residencehttps://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/sale-your-principal-residence/reporting-sale-your-principal-residence.html
- Government of Canadaretrieved 2026-05-09· published 2025-03-21Government Cancels Proposed Capital Gains Inclusion Rate Increasehttps://www.canada.ca/en/department-finance/news/2025/03/government-of-canada-cancels-proposed-capital-gains-inclusion-rate-increase.html
- CRAretrieved 2026-05-09Form T2091(IND) — Designation of a Property as a Principal Residencehttps://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2091ind.html
bc.tax.capital_gains_pre_interaction · v1View in Codex →Verified sources (2)· re-verified 2026-05-08Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- CRAretrieved 2026-05-08Line 12700 — Capital gainshttps://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains.html
- Government of Canadaretrieved 2026-05-08· published 2025-03-21Government Cancels Proposed Capital Gains Inclusion Rate Increasehttps://www.canada.ca/en/department-finance/news/2025/03/government-of-canada-cancels-proposed-capital-gains-inclusion-rate-increase.html
ca.capital_gains.inclusion_rate · v2View in Codex →