Housing might be your biggest cost when you retire, even if you’ve paid off your mortgage. Moving to a less expensive home or region could help you stretch your retirement dollars.
Three ways to lower your housing costs by moving
- Sell and downsize – Selling your home and moving to a smaller place like a condo or apartment can reduce your living costs, including heating, hydro and other costs associated with maintaining a home. Downsizing can also free up equity in your home. Learn more about the pros and cons of selling your home to free up cash.
- Move to a less expensive city or province – Living in a big city can cost you more than living in a town or smaller city (a home in Toronto costs a lot more than one in Orillia, for example). You could also consider moving to another province with a lower tax rate.
- Move to another country – Lower living costs in some countries can save you money and allow you to retire on modest savings. But moving to another country is a big decision. Be sure to do your research and understand how immigration laws and taxes could affect you. You may want to consult an expert before you decide.
Living year-round in a different city or country, no matter how nice it is, is not the same as a short holiday visit. So before you decide to move, arrange a trial run. For example, consider renting a home in the location you’re considering for 6 months to a year.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca