Retirement Home Costs in Ontario: How Selling Funds the Transition

Moving into a retirement home or long-term care facility in Ontario is one of the biggest financial decisions a family will face. Retirement residences (private, non-subsidized) in Durham Region typically cost between $3,500 and $7,000 per month depending on the level of care. Long-term care homes funded through the province have lower out-of-pocket costs, but waitlists can stretch two years or more.

For most Ontario families, the family home is the single largest asset available to fund this transition. Understanding the numbers and planning the sale strategically can make the difference between a comfortable retirement and financial stress.

A standard retirement residence suite with meals, housekeeping, and basic care support runs roughly $4,000 to $5,500 per month in Durham Region. Add in enhanced care (medication management, mobility assistance, memory care), and costs climb to $6,000 to $8,000 monthly. Over five years, that is $240,000 to $480,000.

Long-term care homes have government-regulated rates. A basic room costs roughly $1,900 to $2,700 per month in 2025, but the waitlist reality means many families pay for private retirement care while waiting for a long-term care bed to open. That bridge period can last one to three years.

A typical detached home in Durham Region sells for $850,000 to $1,000,000 in 2025. After real estate commissions, legal fees, and any outstanding mortgage, most homeowners walk away with $700,000 to $900,000 in net proceeds. Invested conservatively, that sum can generate income to cover or significantly offset monthly retirement living costs for a decade or more.

The key is maximizing the sale price, which is where strategic pre-sale preparation matters enormously. A dated home that sells as-is for $780,000 might fetch $920,000 or more after targeted renovations through our Renos for Revenue program. That extra $140,000 translates to roughly two to three additional years of retirement care funded.

If the home being sold is the principal residence of the person moving into care, the sale is typically exempt from capital gains tax under Canada's Principal Residence Exemption. However, timing matters. If the homeowner has already moved out and the home has been vacant or rented for an extended period, the exemption may be partially affected.

Work with your accountant to understand the tax implications before listing. In most cases, selling within a reasonable period after the homeowner moves to a care facility preserves the full exemption, but every situation is different.

When a parent can no longer manage their own affairs, a Power of Attorney for Property allows the designated person to handle the sale. If no Power of Attorney exists and the parent lacks capacity to grant one, the family may need to apply to the court for guardianship, which adds time and legal costs.

This is why estate planning conversations matter before a crisis. If your parent is still capable, ensure a Power of Attorney for Property is in place now. It costs a few hundred dollars and can save months of delay and thousands in legal fees if a sale becomes necessary later.

The families who navigate this transition most smoothly are the ones who start planning before urgency takes over. If your parent is considering retirement living, or if health changes are making independent living harder, reach out for a no-pressure home evaluation. We will give you a clear picture of what the home is worth today, what it could be worth with targeted improvements, and how the proceeds stack up against projected care costs.

Selling the family home is emotional. We understand that. But approaching it with a plan, good information, and a team that has done this many times before makes the process far less stressful for everyone involved.