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Life Stage · Downsizing (55+)

Downsizing in BC — A Guide for 55+ Sellers

Tax planning, capital-gains context, and the buyer side of the swap

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General information only — not legal, tax, financial, or real-estate advice. Verify with a licensed BC professional before acting.

Downsizing from a family home to a right-sized property is a two-transaction event with tax, timing, and sequencing complexity. This page lays out the facts.

Key Facts

Principal Residence Exemption (PRE)

A property designated as your principal residence for every year you owned it is exempt from capital gains on sale. Only one property per family can be designated per year.

Home-buyer 55+ tools available in BC 2026

The BC Home Equity Line of Credit (HELOC) landscape, CHIP reverse-mortgage products, and rent-back agreements are the three main tools 55+ downsizers use. Structure varies by lender — get advice from a licensed mortgage broker.

Property Transfer Tax on the buy-side

The new-home PTT-exemption thresholds still apply to 55+ downsizers if the new property meets the criteria (≤ $1.1M new build with builder-quoted price). No 55+ specific PTT exemption exists.

Bare Land Strata + Age-restricted strata (55+)

Some strata corporations have 55+ age restrictions. Verify via bylaws — the age restriction must be registered under the Strata Property Act (SPA) s.123.

Sequencing: sell first vs buy first

Both approaches have tax + carrying-cost trade-offs. Bridge financing (typically 90–120 days) lets you buy first; a rent-back to your buyer lets you sell first without moving twice. Speak with your REALTOR® about which fits your situation.

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Doug LeMaire, REALTOR®
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Doug LeMaire, REALTOR®
EZtoFind.ca · Fraser Property Management Realty Services Ltd.