Condo to Detached in Vancouver: How Much Extra Cash?

Separate the price difference from the cash gap

A price difference compares assets. A cash gap compares planned uses of money with confirmed sources. Work through the sale first, then the purchase, and finally the dates on which funds become available.

Count money you can actually access when needed. Restricted accounts, an unfinished asset sale or an unconfirmed gift are not automatically equivalent to cash. A protected reserve remains your asset: including it in the plan does not mean it has been spent.

• Net sale proceeds = sale price − mortgage and other debts to be discharged − selling costs.
• New down payment = purchase price − the new mortgage that is approved and can fund.
• Planned cash requirements = down payment + purchase costs + moving and necessary preparation + protected cash reserve.
• Remaining cash gap = planned cash requirements − net sale proceeds − other available cash. Count the same reserve only once.

Why a $900,000 condo sale leaves $410,000 in this example

All properties, household circumstances, fees and rates below are original teaching assumptions in Canadian dollars—not actual clients, valuations or quotes. Assume ordinary resale homes for owner occupation, with no additional sale-related tax liability, complex ownership or undisclosed debts. Add those items if they apply.

The $30,000 selling-cost input is an invented total including applicable taxes, not a standard commission. Confirm the mortgage payout with the lender rather than using only the principal shown in online banking.

FCAC identifies legal, mortgage-discharge and potential prepayment costs among selling expenses. A prepayment charge depends on the contract; ask the lender whether porting is available and on what terms. The resulting $410,000 is a planning figure, not cash already received.

The purchase needs more than a down payment

Assume a final new mortgage of $1,250,000 on the $1.8 million purchase. That makes the down payment $550,000. The loan is an input, not a qualification decision; a preapproval is not a guarantee of final funding.

For general BC property transfer tax, assume a transfer of the entire interest, registration-date fair market value of $1,800,000, no exemption, no additional property transfer tax and no special circumstances. The calculation is $200,000 × 1% + $1,600,000 × 2% = $34,000. PTT is different from annual property tax; fair market value is not always the contract price.

New construction, the buyer's status or the transaction structure may require other taxes or rules. This example does not model those situations. The $40,000 reserve is this fictional household's choice, not a universal recommendation; other costs are not quotes.

Calculate the remaining $115,000 gap

Assume the household also has $120,000 of accessible savings. The $40,000 reserve has not already been subtracted from that figure. The calculation is $645,000 − $410,000 − $120,000 = $115,000.

After using sale proceeds, the purchase plan needs $235,000 of additional equity cash. Existing savings supply $120,000, leaving $115,000 still to arrange. This does not contradict the $900,000 price difference: it answers a different question under a specified financing plan.

If the available-savings figure already excludes the same protected reserve, adjust the calculation to avoid counting it twice. Two property prices alone cannot establish a household's funding gap.

What happens if one assumption changes?

Each row is a separate scenario, not a cumulative change. All other inputs remain fixed, including the assumed selling expenses. Actual fees can change with the price or completion date.

The purpose is to identify when the plan needs revision, not to forecast the market. A smaller approved mortgage cannot simply be dismissed with an assumption that another loan will appear.

Check the deposit and completion dates separately

Assume a negotiated $90,000 deposit is due before sale proceeds arrive. This is a fictional contract term, not a legally prescribed percentage. On completion, the deposit forms part of the down payment: it is already included in the $550,000 and must not be added again.

Paying that deposit from $120,000 leaves $30,000 temporarily available. It does not resolve the final $115,000 gap. Short-term financing may bridge a timing mismatch, but it requires approval, may carry costs and must be repaid.

No condo fee does not mean lower ownership costs

Some expenses previously paid collectively may become the detached owner's direct responsibility. Add property tax, insurance, utilities, municipal charges, routine maintenance and major-repair reserves; check that nothing has been counted twice.

The illustration below uses a $1,250,000 mortgage, 25-year amortization and monthly payments, converting a nominal annual rate compounded semi-annually to a monthly rate. Both rates are invented scenarios, not current offers or a lender qualification stress test. A 25-year amortization does not lock a rate for 25 years.

The payment difference is about $712 per month. Principal repayment is a cash outflow but is different from an expense such as interest or property tax. This is not a complete economic-cost model.

Turn the worksheet into an adjustable moving plan

Complete the sale side, then the purchase side, and put both on one dated cash-flow schedule. Recalculate whenever the sale price, loan or completion date changes.

Bring commuting, usable space and school needs back to specific addresses as well. Being able to complete the transaction does not by itself make the new property suitable for family life.

• Obtain a mortgage payout estimate, selling-cost arrangements and a range for net proceeds.
• Confirm purchase financing with the lender and set a cash limit including costs and reserves.
• List each deposit, completion balance, tax, moving allocation and reserve by amount and date.
• Test a lower sale price, reduced mortgage and higher ownership costs separately.
• Record unresolved conditions and what would make you pause or revise the plan.