Three in ten (27%) Canadian boomers who chose to downsize say costs were more than expected; four in ten (39%) who haven’t downsized are skeptical of the potential savings

For older Canadians considering selling a home to retire in a smaller living space or a more affordable community, downsizing may sound like a financial bargain, but 39 per cent of current homeowners are skeptical that downsizing will actually save them money. According to an Ipsos survey commissioned by HomeEquity Bank, as 27 per cent of downsizers shared, the costs were more than they expected, suggesting that the expenses from downsizing can add up quickly.

While there may be certain advantages for some older adults to downsize their home, almost half of Canadian homeowners aged 55+ (48 per cent) say they have no plans to downsize. In fact, within this group that plans to stay put, 93 per cent say they are happy with their current living arrangements.

The findings are supported by award-winning author Joyce Wayne.

“When I downsized it was a huge mistake for me,” explains Wayne. “I was attracted by the lure of improving my cash flow to support my writing career following my retirement, but it didn’t really net out that way after factoring in all of the closing costs and moving expenses. I moved further away from my friends too, which was more difficult than I imagined. After a few years, I moved backed into my old neighbourhood. It’s a big decision that should not be entered into lightly – know your options and really explore them!”

Many older adults are faced with the downsizing dilemma. According to an earlier Ipsos survey commissioned by HomeEquity Bank in July 2018, half (51 per cent) of those aged 75+ say it’s important to stay in their current home because they want to stay close to family, friends or their community, while four in ten (40 per cent) say emotional attachments and memories are what’s behind the importance of staying put in their current home during retirement. The other side of this dilemma is the 31 per cent of homeowners in the most recent survey who say they need the equity from their homes in order to live comfortably in retirement.

“That’s why I’m so passionate about sharing insights through my blog,” adds Wayne. “I want to help retirees and those approaching retirement to think through their options. Before rushing any decisions, they should consult with a financial advisor to consider whether a reverse mortgage is right for them. It may be the best way to stay in their home while enhancing their retirement years.”

“There are real costs to downsizing… financial, emotional and personal ones,” advises Yvonne Ziomecki, HomeEquity Bank’s Executive Vice President, Marketing. “From a financial perspective if you had to move outside your cherished neighbourhood or further away from family and personal support networks, it may mean you’ll spend more resources to maintain