The True Cost of Keeping Your Victoria Home vs. Downsizing

"I'm not ready to move" is one of the most common things I hear from homeowners considering their next chapter. And it's a completely understandable feeling. Your home is comfortable, familiar, and full of memories. The idea of leaving it behind can feel like giving up something precious.

But here's a question worth sitting with: what is it actually costing you to stay? Not emotionally — financially. When you add up every dollar that goes toward maintaining a home that no longer fits your needs, the numbers can be surprising. This article breaks down the real costs of keeping a larger home in Greater Victoria and helps you understand the financial picture clearly, so you can make a decision based on facts as well as feelings.

The costs most people don't add up

When homeowners think about the cost of their home, they typically think about the mortgage payment. But for long-time owners who've paid off or nearly paid off their mortgage, the "cost" of staying feels like it's almost zero. That perception is misleading.

The true cost of homeownership includes ongoing expenses that never stop — and many of these increase as the home ages. Here's a realistic breakdown for a typical single-family home in Greater Victoria:

Property taxes

Property taxes in Greater Victoria vary significantly by municipality and assessed value. For a single-family home assessed between $900,000 and $1.5 million — which covers a large portion of the market in Victoria, Oak Bay, Saanich, and surrounding areas — annual property taxes typically range from $4,000 to $8,000 or more.

These taxes fund schools, roads, fire services, and local infrastructure. They're unavoidable, and they tend to increase year over year as assessed values rise and municipalities adjust their budgets.

Home insurance

Home insurance premiums in BC have increased significantly in recent years, driven by climate-related claims, rising construction costs, and aging infrastructure. A single-family home in Greater Victoria can easily cost $2,000 to $4,000 per year in insurance premiums — and this figure continues to rise.

Older homes may face higher premiums because of outdated electrical, plumbing, or roofing. Some insurers may even decline coverage for homes with known risk factors, which can complicate a future sale.

Maintenance and repairs

The old rule of thumb is that homeowners should budget 1–2% of their home's value annually for maintenance and repairs. For a $1.2 million home, that's $12,000 to $24,000 per year.

In reality, maintenance costs are lumpy. Some years may be relatively quiet — a furnace service, gutter cleaning, and a few small repairs. Other years bring major expenses: a new roof ($10,000–$25,000), window replacement ($15,000–$40,000 for a full home), deck repair or replacement ($5,000–$20,000), or landscaping overhauls.

Here's what a 30-year-old home in Greater Victoria might need over the next decade:

• Roof replacement: $12,000–$25,000
• Window replacement (full home): $15,000–$40,000
• HVAC system replacement: $8,000–$15,000
• Hot water tank (1–2 replacements): $2,000–$4,000 each
• Electrical panel upgrade (if needed): $3,000–$5,000
• Exterior painting: $5,000–$12,000
• Driveway and walkway repairs: $3,000–$8,000
• Garden and landscape maintenance: $2,000–$5,000/year

These costs are not optional if you want to maintain your home's value. Deferred maintenance doesn't save money — it erodes equity and makes the eventual sale more complicated.

Utilities and day-to-day costs

Larger homes cost more to heat, cool, and light. In Greater Victoria's mild but wet climate, heating is the primary utility cost. A 2,500+ square foot home can easily run $3,000–$5,000 per year in electricity and gas combined. A well-appointed condo of 1,000–1,200 square feet might cost $1,200–$2,000.

Other ongoing costs that add up:

• Water and sewer: $600–$1,200/year depending on municipality
• Garden and lawn care: $1,200–$3,600/year if using a service
• Housekeeping: $2,000–$5,000/year for regular cleaning
• Pest control, chimney sweeping, gutter cleaning: $500–$1,500/year

The hidden cost: opportunity cost of equity

This is the cost most people never think about, and it may be the most significant. If your home is worth $1.2 million and you have $1 million in equity, that money is tied up in bricks and mortar. It's not earning returns. It's not generating income. It's not funding your retirement, your travels, or your grandchildren's education.

If that same $1 million were invested conservatively at 4–5%, it would generate $40,000–$50,000 per year in income. That's not hypothetical money — it's real purchasing power that's currently locked in walls, a roof, and a yard you may not be using to their full potential.

Downsizing doesn't mean losing your equity. It means freeing it up to work for you. Selling a $1.2 million home, purchasing a $700,000 condo, and investing the difference can fundamentally change your financial picture in retirement.

The physical cost: maintaining a home that's bigger than you need

Beyond the financial costs, there's a practical cost to maintaining space you're not using. Cleaning rooms you rarely enter, heating bedrooms that are always empty, shovelling a driveway, maintaining a garden that's become more work than joy — these physical demands increase as we age.

The physical burden of homeownership is a factor in many falls, injuries, and health setbacks for older adults. A home that was perfectly manageable at 55 may become a source of stress, exhaustion, and even danger at 75.

A sample comparison: staying vs. downsizing

Here's a simplified annual comparison for a homeowner in Greater Victoria:

The difference of approximately $20,000 per year doesn't account for the freed-up equity — which, if invested, could generate an additional $20,000–$50,000 in annual income depending on the amount and investment approach.

Note: These are illustrative estimates. Your actual costs will vary based on your specific home, municipality, and lifestyle. This is not financial advice — consult a qualified financial planner for personalized guidance.

When staying makes financial sense

This isn't an argument that every homeowner should downsize. There are situations where staying is the right financial and personal choice:

• The home is in excellent condition and requires minimal ongoing maintenance
• You have low or no mortgage and manageable property taxes
• You actively use the full space — a home office, hobby room, guest rooms for family
• You have the physical ability and desire to maintain the property
• Your home is in an area where values are likely to appreciate significantly
• The emotional value of staying in the home genuinely outweighs the financial cost

There's no single right answer. The goal is to make the decision with clear eyes and full information.

Questions to help you assess your situation

If you're unsure whether to stay or move, these questions can help clarify your thinking:

1. When was the last time I used every room in this home regularly?
2. Am I spending more time and money maintaining the home than enjoying it?
3. Could the equity in this home improve my quality of life or financial security elsewhere?
4. Is the home still safe and comfortable for me as I age?
5. Would I choose this home today if I were starting fresh?
6. What would I do with my time and energy if home maintenance took less of both?

These are deeply personal questions, and there's no rush to answer them. But asking them — and answering honestly — is the first step toward clarity.

Frequently asked questions

How much equity do I need to have before downsizing makes sense?

There's no magic number, but the general principle is that downsizing should leave you in a better financial position — not just a smaller house. After purchasing your new home, you should have enough equity remaining to cover your living expenses, provide a financial cushion, and ideally generate some investment income. A financial planner can help you model the specific numbers for your situation.

Will I pay capital gains tax if I sell my principal residence?

In Canada, your principal residence is generally exempt from capital gains tax under the Principal Residence Exemption. If you've lived in the home as your primary residence for every year you've owned it, you typically won't owe capital gains tax on the sale. However, there can be nuances — particularly if you've ever rented part of the property, run a business from home, or owned the property for only part of the year. Consult a tax professional for your specific circumstances.

What if I sell and then prices go up — will I be priced out of the market?

This is one of the most common fears, and it's worth examining rationally. If you sell your $1.2 million home and buy a $700,000 condo, you're freeing up $500,000 in equity. Even if the market increases 5%, the condo would cost $735,000 — still well within reach of your freed-up equity. Meanwhile, your investment returns may offset the price increase entirely. The key risk is sitting idle: holding a declining asset (an aging home needing constant repairs) while waiting for a market that may never bring prices down.

Should I pay off my mortgage before I downsize?

It depends on your mortgage rate, your age, and your overall financial plan. In many cases, the equity released from selling a larger home is more than enough to purchase a smaller home outright, eliminating the need for a mortgage entirely. If your current mortgage rate is low and you have investment opportunities that outperform that rate, keeping the mortgage and investing the difference may be more advantageous. This is a conversation for your financial advisor.

How do strata fees compare to the cost of maintaining a house?

Strata fees are predictable and cover building maintenance, insurance, common area upkeep, and often amenities. While they feel like an ongoing cost, they replace the unpredictable and often larger expenses of maintaining a detached home — roof repairs, exterior painting, landscaping, and major system replacements. For many downsizers, strata fees represent a net savings compared to the true cost of homeownership.