If you bought your home 4–7 years ago, you might be dreaming of more space. Maybe your family has grown, or you simply need a dedicated home office. However, headlines about a “cooling market” or “lower home prices” might have you hitting the brakes.
The common fear is simple: “I don’t want to sell my home for less than its peak value.”
But here is the secret most people miss: Climbing the property ladder in a softer market can actually work in your favor. When prices dip, the gap between your current home and your dream home often shrinks, saving you money in the long run.
Here is a beautiful example of how one couple we worked with navigated this exact scenario to secure their dream home.
The Starting Point
In late 2020, this couple bought their first home—a 2-bedroom condo in Vancouver—for $752,000.
- Savings: $50,000
- Gifted Funds: $25,000
- Down Payment: $57,500 (The remaining cash covered closing costs).
Note: At the time, BC’s First-Time Home Buyer Property Transfer Tax Exemption was limited to purchase prices of $500,000 or less, so they paid $13,040 in Property Transfer Tax.
All-in, their monthly housing cost was $3,700. Context: Back in 2020, rent for a similar unit was averaging $3,000/month. While they paid a premium of roughly $700/month to own, they were building equity rather than paying a landlord.
The Move
Fast-forward five years. Thanks to a low 2.24% interest rate, the couple paid their mortgage balance down to $608,000.
They recently sold that condo for $820,000. After realtor commissions and paying out the mortgage, they walked away with $182,000 in tax-free equity.
They found a beautiful unit in a nearby complex that provides an extra 300 square feet of living space. Because the purchase price was over $1 million, they were required to use a 20% down payment.
To make this work, they withdrew an additional $46,000 from savings to cover closing costs and top up the down payment.
Reality Check
This is where the math gets interesting.
All in, the couple’s new monthly housing cost is $4,600/m—an increase of roughly $900/month.
However, we have to look at the alternative. If they had stayed in their smaller 2-bedroom condo and simply renewed their mortgage at today’s rates, their payments would have increased by $653/m anyway.
The Real Cost to Move Up the Property Ladder:
- Net Monthly Increase: $247/m ($900 new cost – $653 renewal cost)
- One-time Investment: $46,000 from savings
For just $247 more a month than they would have paid to stay put, they secured a larger home that fits their future.
Buying and selling in the same market protects you. While you might sell your current place for slightly less than the market peak, you are also buying your upgrade at a “discount.”
Are you sitting on equity and wondering if now is the right time to move? You might be surprised at how accessible climbing the property ladder actually is right now.
Click the link below to explore your options!