In a deflationary cycle the values of assets and the prices of many things will decline. So I could end up in a position a couple of years from now where my home has lost 20% of its value, my income has declined from $5,000 to $4,000 per month, and I still have to pay $1,200 per month on my mortgage.
That's why it's always better to have a mortgage in an inflationary cycle. You're in a good position if the payment on your mortgage is fixed, but your income and the value of the asset increase over time.
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