Should I sell my home to upgrade with my $500K payout?

I need guidance. I own a property. 475K is owed. 55K is in redraw. 500K is in offset. I could pay off my house. I could save and move in 5 to 10 years. The house is small. It has 3 bedrooms, 1 lounge, 1 bath, no garage. I have 3 young kids. The real-estate agent said I could get 750k to 800k. I expect 730k to 740k. I am looking at a house. It has 5 bedrooms, 3 baths, 2 lounges, and a 2-car garage. It costs 1.1 million. If you were in my shoes, would you sit and hold, move when you can afford a new deposit, live debt free? Or would you take a risk and buy a new home? For context: I received a 500k payout for a workplace injury.

I would combine all your money to buy the new $1.1 million house and take a small loan. We did that last May, and it makes life less stressful.

This is both a financial and emotional question.
Having the house paid off feels good.

But in five years, the big house might be harder to afford.

Think about the long term.
Consider what you and your family truly need.