All Praise to Allah Swt and blessings of him be on Prophet Muhammad peace be upon him His family and companions.
Allah Swt is the most merciful and compassionate
Abu Huraira reported Allah's Messenger (ﷺ) as saying:
There are one hundred (parts of) mercy for Allah and He has sent down out of these one part of mercy upon the jinn and human beings and
animals and the insects, and it is because of this (one part) that
they love one another, show kindness to one another and even the beast
treats its young one with affection, and Allah has reserved ninety
nine parts of mercy with which He would treat His servants on the Day
of Resurrection.(Sahih Muslim)
But Allah Swt also says in Quran 4:17,18
"Allah accept the repentance of those who do evil in ignorance and repent soon afterwards; to them will Allah turn in mercy: For Allah is
full of knowledge and wisdom.Of no effect is the repentance of those
who continue to do evil, until death faces one of them, and he says,
"Now have I repented indeed;" nor of those who die rejecting Faith:
for them have We prepared a punishment most grievous"
If we sin Allah swt punishes us but because of his kindness he does not punish at the moment giving us enough time so we could realize and ask for his forgiveness and mercy but we have this time to ask mercy before our death,because Allah is also a judge(Al-Hakam) and (Al-Adl)which means the just ,he is fair to everyone.Now if we believe that He is so kind that He will forgive all sins it can lead us to wrong path.If Allah forgives all sins people will have no reason to stop doing bad deeds,If a judge forgives everyone this world will be full of bad people then,"And not equal are the good deed and the bad"41:34.If you do good would would get reward ,if you do bad ,you get a correction,if you do bad and really sorry and do repentance Allah Swt may forgive you as He is (Ar -Rahman) The Most Merciful.
"Say: "To Allah. He has prescribed Mercy for Himself."6:12
Allah Swt and His messenger knows best.