If you’re retired and on a fixed income, the rising cost of living makes paying for everyday expenses—like utilities, property taxes, insurance, and healthcare—more of a challenge.
On top of your basic monthly bills, there’s general home maintenance to think about, plus the cost of making your home more accessible and comfortable as you age in it.
Your home is likely your biggest asset, so the thought of selling has crossed your mind.
But you don’t want to leave.
Not the kitchen where family celebrations unfolded over years of shared meals and familiar laughter. Not the wall where your child scribbled their name in permanent marker. Not even the cracked tile that never got fixed.
And it’s not just the house itself, is it?
It’s the routines: The morning coffee in the family room, the concrete footpath through the park, and the bench where you’ve sat more times than you can count, watching the seasons change.
This is what “aging in place” really means—it’s more than staying in your home, it’s staying in your life.
And for over 80% of Canadians aged 50+1, that’s the goal. They don't want to go into a care home or start over somewhere unfamiliar. They want to remain in the home they love, maintain their independence for as long as they can, and not burden loved ones.
But underneath that desire, there’s a steady, deeply felt, and often unspoken question that tends to surface over time: How do you afford to age in place?
A tale of two retirements: Meet Priya and Frank2
Whether you want more from your home or need your home to give more back, there’s always a story.
| "I don’t want to leave this house. I want stay in the home I love" |
"I can’t afford to leave, but I can’t afford to stay like this either" |
|
Priya, a 72-year-old widow, has lived in her Toronto home for over 30 years. She and her late husband purchased it for $300,000. Today its value is approximately $1.6 million.
Her home needs are changing. She’s already put grab bars and handrails in the bathrooms, but is struggling to choose between adding a stairlift or a main-floor bedroom. While expensive, they aren’t luxuries. They’re what will allow her to stay safe and independent in the home she loves for longer.
|
And then there's 74-year-old Frank. He looks around and sees the same walls, the same neighbourhood, the same life, but after retirement, the cash flow is tighter, especially with a few years still left on his mortgage. He finds it tough to even keep up with property tax, home insurance, and utility costs, as they continue to rise.
It’s not upgrades or renovations he’s worried about—it’s simply paying basic bills.
|
They're living in different realities, and both are asking the same question: How do I keep this home working for me?
2 Hypothetical example for illustrative purposes only.
What are your retirement income sources?
The median after-tax income for unattached Canadians aged 65+ is approximately $36,400 per year, or ~$3,033 per month3.
This reflects income from all sources, including government benefits, workplace pensions, and withdrawals from personal savings:
| Income source |
Monthly amount |
| Old Age Security (OAS) |
$743.054 |
| Canada Pension Plan (CPP) |
$925.355 |
| Workplace pension (blended median) |
~$765 |
| Personal savings/other |
~$600 |
| Total |
~$3,033 |
What does it cost to stay in your home?
Whether you’ve paid off your home or not, the cost of living doesn't disappear; it evolves. General home maintenance and accessibility modification costs, healthcare, transportation, and other small conveniences begin to add up and can feel harder to manage.
Regardless of your personal financial situation, you’re not alone. One of the most common fears is running out of money. While every situation is different, the following ranges give you a realistic baseline of what it costs to age in place in Canada today.
Taxes, insurance, and maintenance
Property taxes alone can range from $2,500 to over $9,000 per year6, depending on where you live. Insurance may add an additional $1,000 to $2,000, depending on the size and age of your home7. Add ongoing maintenance, such as roof repairs, furnace servicing, and replacing your hot water tank, too. And as mobility needs change, seasonal costs like lawn care and snow clearing create a real snowball of recurring expenses.
A common rule for home upgrades and maintenance is to set aside 1-3% of your home’s value each year. On a $1 million home, that’s $10,000 to $30,000 annually, not because something always goes wrong, but because eventually, something will.
Home modifications and additional support for Canadians 65+
As mobility needs change, your home may need to change with them. The following are among the most common home modifications for aging in place, and may qualify for the federal Home Accessibility Tax Credit (HATC), which allows Canadians 65+ to claim up to $20,000 per year8.
Here are some cost estimates:
| Home accessibility modification |
Estimated cost |
| Bathroom accessibility: Falls in the bathroom are a major cause of injury for older adults. Grab bars, walk-in or zero-threshold showers, and non-slip surfaces reduce risk and help preserve independence. |
$500-$10,000 |
| Wheelchair ramps: Steps at the entrance can make your home inaccessible. A permanent ramp removes the barrier. |
$1,000-$6,000 |
| Wider doorways: Standard door frames, especially in older homes, may not accommodate a wheelchair or walker. Widening them restores movement between rooms. |
$500-$2,500 per doorway |
| Stairlifts: Hip, knee, or balance issues can make stairs dangerous or unusable. A stairlift provides access to upper floors without risk. |
$3,000-$15,000 |
| Home monitoring and personal emergency response: Medical alert buttons, fall-detection sensors, and smart home devices provide peace of mind for homeowners and their families. |
$200-$1,000 for equipment, plus $30-$60 per month for monitoring |
Cost estimates are approximate and may vary by province, contractor, and scope of work.
And then there may be a need for additional support
For those who choose to stay home rather than move to a care facility, the cost of independence often includes professional help. A Personal Support Worker (PSW), Registered Nurse (RN), or specialized agencies, which charge between $16 and $27 per hour9,for a few hours a week can run up hundreds of dollars per month.
The numbers are meant to clarify one thing: Aging in place isn’t just about staying in your home, it’s about sustaining the life you want, and knowing how to fund it.
What your options for aging in place?
The good news is that there are more options than most people realize. But understanding them starts with seeing the full picture of what it actually costs to age in place and how people are funding it.
1. Downsizing your home
Most people assume downsizing is the logical move, but the math often surprises retirees.
Realtor fees, legal costs, land transfer taxes, moving expenses, and the cost of setting up a new space can reduce proceeds by 15% to 25% or more. And beyond the financial side, there’s something harder about leaving a place that already fits your life.
2. Selling to rent
You could sell the home you’re in and use the proceeds to move into a rental condo or apartment, but you’ll need to consider the cost of commission to the real estate agents—which could be 5% or more of your home’s value10.
Don’t forget legal fees and moving costs, not to mention the emotional toll of having to find your new rental, pack your belongings, and move. Once you’re in, you also run the risk of your landlord selling the property and having to move again with short notice.
3. Family support
Retirement doesn’t happen in isolation. Behind the scenes, millions of Canadians rely on family support11, whether that’s living together, splitting costs, or getting help with daily expenses. Statistics Canada data shows one in four Canadians is a caregiver11, and millions already live in multigenerational homes12. It may not show up on a balance sheet, but in practice, family support can be worth hundreds—even thousands—of dollars a month.
4. Staying in the home you love by turning it into income
When asked what they want most from retirement, most Canadians say the same thing: To continue living in their home.
A 2025 study by the National Institute on Ageing (NIA) found that 81% of older adults in Canada would prefer to age in place rather than move to an institution12. A separate survey by the Canadian Medical Association and the NIA found that 96% of older Canadians want to live independently for as long as possible to avoid going into long-term care13.
Your home may be your largest financial asset. In Canada, homeowners can access up to 59% of their home’s value without selling by using tools such as reverse mortgages or home equity lines of credit. These funds can be taken as a lump sum or turned into a steady monthly income, transforming home equity into a stream of cash flow in retirement.
With over $8B already borrowed this way, more Canadians are turning to their homes as a source of income14.
What this looks like in real life
Whether you want more from your home—or need your home to give more back—your equity can become part of your retirement plan.
Let’s revisit Priya and Frank2.
With the help of a reverse mortgage, Priya is able to move forward with accessibility modifications on her home. She adds a stairlift, a wheelchair ramp, and wider doorframes to adapt her home to work better for her. She brings her family back into the space in a way that feels natural again. For her, aging in place is about preserving and enhancing her quality of life.
Frank’s situation is different. He isn’t looking to upgrade or retrofit his home, he’s simply looking for relief. A steady monthly amount, even $1,000 to $2,500, can ease the pressure of paying for basic expenses—with maybe a little extra cushion for when the furnace goes on the fritz. It can bring a sense of financial control and peace of mind back into his life, without forcing him to leave the place he knows and loves.
Your next steps
With a fixed retirement income and rising living costs, managing monthly expenses can be challenging—but the equity in your home can help.
A reverse mortgage allows you to unlock that equity to support day‑to‑day costs or fund home accessibility upgrades, all while continuing to live comfortably in the home you love.
You don’t have to decide today, but you can start understanding what your home could unlock. The earlier you explore your options, the more flexibility you keep.
Get started by using our reverse mortgage calculator to see how much tax-free15 cash you may qualify for and explore what your monthly income could look like.
You can also speak with a Canadian-based reverse mortgage specialist with no obligation, Monday to Friday, 8 am to 8 pm ET, by calling 1-866-576-0374.