• Douglas Paterson

Thinking about Upsizing Your Home?

Updated: Mar 31, 2021


large detached home

Life is always changing from your workplace to your fiends to your family, things are always changing. With these changes, you may start to feel your current home is no longer working for your personal and professional situation. Perhaps things are feeling cramped in your small condo, or maybe you have a new child on way and feel you need more space to help the situation run smoothly. If that sounds like you, it may be time to consider upsizing your condo or home.



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First off it is critical to understand, if you are aiming to upsize during an existing mortgage term, you need keep in mind changing homes will cause you to break your mortgage and there may be fees associated with do so. In some cases, mortgages are ‘portable’ (I can help you figure this out), which can make the transition much smoother.

If you are unable to port your mortgage (bring your mortgage with you to the new home, you will need to re-qualify for a new mortgage base don’t he current market rates and show that you are able to pass the government mandated “stress test” rules.


Side note: a “portable” mortgage provide one example (there are many) why mortgage is not all about getting the best rate. The terms associated with the best rate possible for your situation matter just as much and often more than the rate itself.



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If it has been a while since you applied for a mortgage, you are likely not familiar with the “stress test”. This test helps protect people from getting in over their heads with sizeable debt loads, particularly in instances when interest rates begin to rise. The test determines whether a homebuyer can manage the principal and interest payments, should interest rates increase in the future. The “stress test” rate is based on the 5-year benchmark rate from Bank of Canada or the customer’s mortgage interest rate plus 2% - whichever is higher.

Aside from re-qualifying for a mortgage, it’s very important to look at the costs associated with moving to a new and larger home. These costs will include Property Transfer Taxes, Realtor Fees, increased heating and cooling as well as home insurance rates. Another important item is the fact that costs of home ownership rise in relation to the type of home you choose to live in. If you are moving up from a condo or apartment to a single-family home (detached or otherwise), you will save on condo fees but will be responsible for all manner of maintenance in and outside your home. It is a good rule of thumb to portion 1% of your home’s purchase price, for annual maintenance.



blue condo with balconies

Regardless of your motivation toward moving up and increase the size of your home, this process is completely doable if you prepare correctly. As your dedicated mortgage professional, I would be honored to assist you during this process to ensure the best mortgage transition and to help you toward future financial success! I look forward to working with you. Please reach out to me at your earliest convenience.

Doug Paterson - Business Professional

Doug Paterson

Mortgage Agent in Ontario, Canada.

Dominion Lending Centres.

416.432.8836 | www.dougpaterson.com


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