Upsizing or Downsizing Your Home: Key Considerations

Short answer: Upsizing means a bigger mortgage, higher payments, taxes, utilities and maintenance, in exchange for space and possibly more equity growth. Downsizing frees up equity and lowers costs, but watch condo fees and the lifestyle change. Run the numbers on carrying costs, not just the price.

Upsizing

Common reasons: a growing family, a home office, a yard or garage, a better school.

Money: a larger mortgage and payment, more for property tax, utilities and upkeep, and more equity needed for the down payment.

Ask: can you comfortably carry the higher costs, how long will you stay, and will the extra space really improve your life?

Downsizing

Common reasons: kids moved out, lower maintenance, freeing equity for retirement, simplifying.

Money: a smaller or no mortgage, lower costs, a chance to invest the surplus, but watch condo fees.

Ask: will the smaller space work, what will you do with the extra cash, and are you ready to leave?

Location

Upsizing often means moving further out where larger homes cost less. Downsizing may mean a condo closer in. Think about commute, schools, work, family and amenities.

Timing

The same questions apply either way: sell first, buy first or overlap, and how you’ll access your equity.

→ Read more: Should I Sell First or Buy First?

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This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.