Stuck Between Moving and Staying? These 3 Questions Can Help You Decide

If you’re a homeowner in Toronto with a low mortgage rate, you might be feeling a bit stuck these days. Perhaps you’ve considered making a move—whether it’s for more space, a different neighbourhood, or finally finding a home that feels just right. But then the reality of today’s interest rates sets in, and suddenly, that idea gets pushed aside.

This scenario is playing out for many across the city. Countless homeowners locked in at historically low rates back in 2020 or 2021 are now hesitant to let go of what feels like a great deal—even if their current home no longer suits their lifestyle.

This phenomenon is often referred to as the “lock-in effect,” and it can be a powerful deterrent. However, it doesn’t mean you’re out of options. If you’ve been hesitating, unsure whether to stay or go, there are three questions that can help clarify your situation—and guide you toward a decision you can feel good about.

Is your current home still working for your life—or just your loan?

This is perhaps the most crucial question to consider. When you look beyond the interest rate and the numbers, is your home still supporting the way you live your life on a daily basis?

Maybe what once felt spacious now feels cramped. Or perhaps your home feels too large and quiet since the kids moved out. Your needs might have shifted—maybe you’re working from home more often, caring for aging parents, or have welcomed a new family member. Or it could be that you’ve simply outgrown the space emotionally. What used to feel like a dream home now resembles a never-ending to-do list.

It’s easy to push those feelings aside and focus solely on your current rate. But when your home no longer fits your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but emotionally, mentally, and physically. The right home doesn’t have to be perfect, but it should simplify your daily life rather than complicate it.

What would a move really cost you—and what might it make possible?

There’s no denying that today’s interest rates are higher than they were a few years ago. However, that doesn’t automatically mean that moving isn’t financially feasible. What matters is how the entire picture looks for you.

Many homeowners in Toronto are sitting on significant levels of equity. Canada’s soaring home values mean homeowners are sitting on jaw-dropping amounts of equity. As of May 2024, the average Canadian home cost $733,300, up nearly 40% from $524,900 just five years earlier, according to the Canadian Real Estate Association (CREA). In turn, Canadians have collectively built an estimated $4.7 trillion in home equity—yes, with a “T.” This figure, according to Clay Financial, represents between half and two-thirds of Canadians’ total net worth.

This equity could serve as your down payment on a new home. It could reduce the amount you need to borrow, lower your monthly payments, or help you avoid private mortgage insurance.

On the flip side, consider the lifestyle benefits that a move could offer you.

Perhaps it would bring you closer to family, provide your kids with access to a better school district, or give you that home office or outdoor space you’ve been wanting. Maybe it means downsizing and freeing up more cash each month. Or finally settling in a neighbourhood where you feel more at home.

Moving isn’t just a financial decision; it’s a quality-of-life decision. When you weigh both the gains and the costs, you might find that the numbers aren’t as one-sided as they initially seem.

If you stay, are you staying intentionally—or just avoiding a hard choice?

It’s perfectly fine to stay where you are. In fact, for some people, that’s absolutely the right choice. But here’s the catch: it should be a conscious decision, not just a default option.

Ask yourself: If I choose to stay for the next three to five years, what would I need to change or invest in to make this home truly work for me? Would I renovate the kitchen that’s no longer functional? Convert the spare room into a proper office? Redesign the backyard so it actually gets used?

Staying doesn’t have to mean settling. Sometimes, making peace with your current home involves creating a plan to improve it—whether through small updates, strategic renovations, or simply adjusting how you use your space.

However, staying without a plan can lead to years of quiet frustration. In many cases, those small compromises can add up to something more costly than moving would have been.

Final Thoughts

Feeling “stuck” can be frustrating. But the good news is, you’re not as trapped as you might think. You’re simply facing a decision that deserves careful consideration.

You don’t need to have all the answers right now. But asking the right questions—about your lifestyle, your goals, and your finances—can lead you toward clarity. Whether you decide to stay or move, the aim isn’t to time the market perfectly. It’s to make a choice that supports your life and future.

If you’re uncertain about what comes next, let’s discuss it. We’ll help you weigh the pros and cons, look at real numbers, and explore what’s possible. This isn’t about pressuring you into a sale; it’s about giving you the clarity and confidence you need to move forward in the direction that’s right for you.