i would check out the tax advantages to renting (i'm assuming like in canada, it in effect becomes a small business with writeoffs for repairs, property management, depreciation of certain items due to age (furnace, etc). and use the income towards the purchase of your new house. i know where you are coming from. i had to make a similar call when i moved from one city to another..the house i owned in one city was worth 60,000..new one 196,000. after checking out my options , keeping it was my best option. it's paid off now, sold and money in the bank above helping me pay for my houses since.