Whether you’re dreaming of more space or looking to simplify, making the move to a new home is a big decision. Upsizing and downsizing both come with unique perks and potential pitfalls, so understanding what each path looks like—financially and practically—can help you make a confident choice.
What’s Driving the Change?
Homeowners consider upsizing or downsizing for all kinds of reasons, usually tied to personal changes or long-term plans.
- Upsizing could mean your family is expanding, you’re spending more time at home, or you’re craving more comfort—like a larger yard, a home office, or extra bedrooms.
- Downsizing might make sense if your home feels too big now that the kids have moved out, or if you’d rather spend your time and money on other goals than maintaining a large space.
Whatever the reason, moving into a new home often marks a new chapter—and that’s worth planning for.
Crunching the Numbers
Bigger Homes, Bigger Expenses:
A larger house typically means a larger mortgage. But that’s not the only cost. You’ll also likely see increases in property taxes, utility bills, insurance, and upkeep. Even furnishing those extra rooms can add up fast.
Smaller Homes, Smaller Bills (Usually):
Going smaller can free up equity and lower your monthly payments, but it’s not always a guaranteed money-saver. Renovations, upgrades, or moving to a trendier neighborhood might offset some of the savings. And don’t overlook moving costs and the possibility of needing new furniture that fits the new space better.
Timing Is Everything: What’s the Market Doing?
Before listing your home or house hunting, take a good look at the current real estate market.
- Buyer’s market? Great for purchasing, especially if you’re upsizing—you’ll likely get more value for your money. Just be aware that selling your current home might take longer or result in a lower offer.
- Seller’s market? A fantastic time to sell at top dollar, which can be especially helpful if you’re downsizing. On the flip side, buying a larger home during a hot market means you might pay more than you’d hoped.
Market conditions play a major role in how financially beneficial your move will be—so don’t skip this step.
Think Ahead
It’s not just about what works today—consider where you’ll be in the years to come.
- Upsizing: Will you still need that space in a decade? If the kids are only a few years from moving out, it may not make sense to take on a bigger mortgage long-term.
- Downsizing: Will the new home suit you in the future? If retirement is part of the plan, consider features like single-level living, accessibility, and proximity to amenities and healthcare.
Pro Tips for a Smooth Transition
Making a move doesn’t have to mean starting from scratch financially. Here are a few options that might make the shift easier:
- Mortgage porting: Some mortgages allow you to transfer your current mortgage to your new property and keep your existing rate. If you’re buying a more expensive home, you may be able to blend your current rate with a new one.
- Bridge financing: If your sale and purchase dates don’t line up perfectly, bridge financing can help cover the gap temporarily.
- Rental income potential: Not quite ready to sell your current place? Consider renting it out to generate income.
- Flexible down payment rules: You still only need 5% down on the first $500,000 of your new home and 10% on the remainder (up to $1.5 million)—even if you’ve owned a home before.
Let’s Make Your Next Move the Right One!
Whether you’re upsizing for more room or downsizing to gain flexibility, there’s a lot to think about. I’m here to help you evaluate your options, crunch the numbers, and walk you through the process with clarity and support.
Ready to talk about what comes next? Let’s chat about how to make your move work for your lifestyle and your finances.