When should you downsize your home?
This is a personal decision that depends on your individual situation and needs – but a change in circumstances is what usually prompts the move. However, there are a few things that you might need to consider. For example, if your income has decreased because you’ve had a salary cut or you’re retiring, it might be a good opportunity to move to a less expensive place with more affordable maintenance costs and taxes. This could also help you reduce your mortgage payments or have a more comfortable retirement.
Whether you’re an empty nester approaching retirement, want to be mortgage-free or are looking to move close to your loved ones, do your research and find a neighbourhood and property that suits your new needs and priorities. You’ll also need to consider whether you want to reduce your mortgage payments or fully pay it off.
So, is it worth downsizing to be mortgage free?
Downsizing might be a good option if you’re looking to retire and gain financial freedom. Since your income will reduce when you retire, being mortgage-free might give you greater flexibility with monthly outgoings. As you’ll fully own your house, you could live comfortably without worrying about mortgage repayments.
Find out more about downsizing in retirement.