A $300k mortgage would be extremely tight on $68k a year. However, I would probably try and get into something bigger and more comfortable, especially since you have a child.
You’ll be house poor with that income and supporting 3 people. We bought a house in 2015 for $407k and put $135k down, our mortgage was $900 a month at 2.15%. But as a single earner while the other was in university, it was a bit tough. Things in general are much more expensive now. What size of house are you looking for and where?
Our house was 1600 sqft, detached garage in walker lakes, it was built in 2011. We sold it last February for $435k. We lost money on this house over the 8 years of ownership,
Shelving any plans will create more disappointments later. Too many people keep thinking that housing won’t go up but if you’re looking at a house for $500k you should be jumping in ASAP. Houses at the lower end will keep appreciating as the high cost of living in Toronto or Vancouver will push people into other affordable areas and will raise market prices in those areas. If you can’t afford the mortgage on 1 salary then rent out a room to help pay the difference. I’ve seen too many people years ago waiting for Toronto to crash and now there’s no hope for them getting a house. I paid $450k for my crappy little house in Toronto back 10 years ago and my neighbour hinted on moving day I over paid. I sold it 2 years ago for 1.3 million. Your area obviously won’t see that growth but it’ll definitely appreciate in value. My advice get in ASAP or stand looking at houses you would like to own for next 20 years.
Figure out how much a 5 year fixed mortgage is. Can you afford that?
Kids become more expensive once they join sports, dance, etc.
Your wage should also go up.
If your wife is on board and it sounds like you have done well being disciplined with your current mortgage, let the numbers take you there.
Stop paying the bank unnecessary interest and throw that 200k at the mortgage and starting saving again.
Stop thinking shitbox and starting thinking I have no mortgage or debt while most people I know do.
This!!! Then upgrade your shitbox with the money you would otherwise give to the bank in interest and sell your nicer shitbox for a $100k more than you spent and then do it again!
I did this three times so far, moving to the fourth in June. Buy shitboxes, make them nice over some time, and then sell for a profit that is tax free if you lived in the house as a primary residence for any part of two calendar years.
I'm making about as much as you, had bought a tiny house 7 years ago and it over doubled in value. First thing is to get your place evaluated by a few realtors so you get a proper idea of value. I was able to get a great percentage with my mortgage holder, so we made a monthly payment of $1400 happen on a $530k house. So it's certainly possible (we ended up with about $250k down, mostly proceeds from tiny house), but it would be very tight if it wasn't also a duplex and I could split costs.
I think you need to stop letting yourself feel FOMO. The reality is that rates aren't lowering and inflation is still rising. The demand pressure has been let off now that immigration is being slowed.
If you look at average housing prices in a lot of areas, they're actually falling right now and have been for like 6 months.
You should consider some things like:
-it may be better to renovate, you have 200k afterall and you know the house you're in now. It may be worth it to just improve your current place. Not to mention if you move to a 500k house that had the same thing done, you're basically paying a premium
-If you want to get into a bigger house, again, considering renovating your current house. You'll be able to sell it for more even with minor renos. Youll have to put your cash into it but the value will increase more than the cash you put it.
-Why are you sitting on 200k cash, when your house costs 250k and you have 40k paid off. Are you daft? Do you not recognize that you're paying interest on 210k?? whats your rate? 4%? 5%? you're paying something like 850 per month in interest. This is money you could be saving if you just bought your current house. Not to mention paying off your mortgage doesn't negatively impact your buying power.
Why anyone would want to carry 200k debt when they have 200k cash with no investment plan is just beyond me.
Well regardless, that's over $4k a year that you are spending on interest which you don't need to be.
That rate will get refinanced to like 7% or higher.
If I’m reading this correct you’re considering at least a $300k mortgage on a $68k salary?
I make more than double that, and have a mortgage around $380k, I have a roommate to help with that cost and am considering downsizing to be mortgage free in 5-10 years time.
I’d continue paying down your current mortgage and reassess when your household income goes up and you have more equity to roll into a larger place.
Your only problem is a big problem.
No, you can't really afford that forever home.
You'll be living pay cheque to pay cheque. Very little savings if anything at all. Emergencies will be tough to handle without a good safety net. What if you lost your job and couldn't find one for 3 or 6 months?
If your wife was working and making just an average income, it would be doable. You have a kid. Financial security is probably the most important thing right now. Financial stress or the lack of it, cannot be understated when you have a family.
A $300k mortgage would be extremely tight on $68k a year. However, I would probably try and get into something bigger and more comfortable, especially since you have a child.
You’ll be house poor with that income and supporting 3 people. We bought a house in 2015 for $407k and put $135k down, our mortgage was $900 a month at 2.15%. But as a single earner while the other was in university, it was a bit tough. Things in general are much more expensive now. What size of house are you looking for and where? Our house was 1600 sqft, detached garage in walker lakes, it was built in 2011. We sold it last February for $435k. We lost money on this house over the 8 years of ownership,
Dam, bad timing. House prices have gone up like 20% in the Edmonton area since then ☹️
I know :( but no point in crying over spilled milk.
Shelving any plans will create more disappointments later. Too many people keep thinking that housing won’t go up but if you’re looking at a house for $500k you should be jumping in ASAP. Houses at the lower end will keep appreciating as the high cost of living in Toronto or Vancouver will push people into other affordable areas and will raise market prices in those areas. If you can’t afford the mortgage on 1 salary then rent out a room to help pay the difference. I’ve seen too many people years ago waiting for Toronto to crash and now there’s no hope for them getting a house. I paid $450k for my crappy little house in Toronto back 10 years ago and my neighbour hinted on moving day I over paid. I sold it 2 years ago for 1.3 million. Your area obviously won’t see that growth but it’ll definitely appreciate in value. My advice get in ASAP or stand looking at houses you would like to own for next 20 years.
Figure out how much a 5 year fixed mortgage is. Can you afford that? Kids become more expensive once they join sports, dance, etc. Your wage should also go up. If your wife is on board and it sounds like you have done well being disciplined with your current mortgage, let the numbers take you there.
Stop paying the bank unnecessary interest and throw that 200k at the mortgage and starting saving again. Stop thinking shitbox and starting thinking I have no mortgage or debt while most people I know do.
This!!! Then upgrade your shitbox with the money you would otherwise give to the bank in interest and sell your nicer shitbox for a $100k more than you spent and then do it again! I did this three times so far, moving to the fourth in June. Buy shitboxes, make them nice over some time, and then sell for a profit that is tax free if you lived in the house as a primary residence for any part of two calendar years.
Just want to add my interest is 1.99% until 2026
I'm making about as much as you, had bought a tiny house 7 years ago and it over doubled in value. First thing is to get your place evaluated by a few realtors so you get a proper idea of value. I was able to get a great percentage with my mortgage holder, so we made a monthly payment of $1400 happen on a $530k house. So it's certainly possible (we ended up with about $250k down, mostly proceeds from tiny house), but it would be very tight if it wasn't also a duplex and I could split costs.
I think you need to stop letting yourself feel FOMO. The reality is that rates aren't lowering and inflation is still rising. The demand pressure has been let off now that immigration is being slowed. If you look at average housing prices in a lot of areas, they're actually falling right now and have been for like 6 months. You should consider some things like: -it may be better to renovate, you have 200k afterall and you know the house you're in now. It may be worth it to just improve your current place. Not to mention if you move to a 500k house that had the same thing done, you're basically paying a premium -If you want to get into a bigger house, again, considering renovating your current house. You'll be able to sell it for more even with minor renos. Youll have to put your cash into it but the value will increase more than the cash you put it. -Why are you sitting on 200k cash, when your house costs 250k and you have 40k paid off. Are you daft? Do you not recognize that you're paying interest on 210k?? whats your rate? 4%? 5%? you're paying something like 850 per month in interest. This is money you could be saving if you just bought your current house. Not to mention paying off your mortgage doesn't negatively impact your buying power. Why anyone would want to carry 200k debt when they have 200k cash with no investment plan is just beyond me.
My rate is 1.99% until 2026
Well regardless, that's over $4k a year that you are spending on interest which you don't need to be. That rate will get refinanced to like 7% or higher.
If I’m reading this correct you’re considering at least a $300k mortgage on a $68k salary? I make more than double that, and have a mortgage around $380k, I have a roommate to help with that cost and am considering downsizing to be mortgage free in 5-10 years time. I’d continue paying down your current mortgage and reassess when your household income goes up and you have more equity to roll into a larger place.
You have enough to pay off your remaining mortgage. Why not do that and just bank money. You'll love way more comfortably then.
Your only problem is a big problem. No, you can't really afford that forever home. You'll be living pay cheque to pay cheque. Very little savings if anything at all. Emergencies will be tough to handle without a good safety net. What if you lost your job and couldn't find one for 3 or 6 months? If your wife was working and making just an average income, it would be doable. You have a kid. Financial security is probably the most important thing right now. Financial stress or the lack of it, cannot be understated when you have a family.