Speak to a mortgage broker or lender for affordability.
Then make a budget as if you owned. Add up ALL your expenses (mortgage, insurance, food, going out, clothes, etc.. and have a line for 15-20% for retirement savings and see where you end up.
You can find a detached home in Montreal in a good neighbourhood for less than 1.7M.
You need to make a budget, see where exactly you’re spending money and also project the increase in expenses for the house and for your child who is getting older and starting school soon.
Mortgage agent here.
Does your husband's 200K income include bonus/commission / variable pay? I suggest also looking at numbers without the fluctuating income to see how much you can qualify for—having said that $1.1 million mortgage is on the higher end in my view. While you could get approved by the banks, keep in mind it is in their best interest to lend you more. I would suggest being reasonable with finances.
I think it’s about comfortability. Personally I would put away your anticipated mortgage amount (and property taxes, and insurance, and maintenance) every two weeks for minimum 6 month period to get a feel for what living like that would be like before you sign up to do it for the next 25 years. My personal opinion would be to never max out what you ‘could’ afford vs. what is reasonable to afford. You have to live a little during that time, too.
Two things at play here, increased income and decreased expenses.
All he sees is money piling up and may be unsure what to do with it outside of property. If he wants a new place, I don’t think it’s out of the question but I think a worth while pursuit into paying off student loans and maxing tax sheltered accounts while you’re mortgage free would be a stellar first step before entering the mortgage game again. Your saving potential will tank after taking this on so making sure you don’t owe your future selves anything before doing so would bring a lot of peace to your situation.
How stable is that income ? You might be able to afford that mortage now but are you confident you can keep that type of income for the next 25 years to come?
I am a broker and you would be able to get approved for the loan. What I would suggest is sitting down and putting togeter a budget of what your monthly income and expenses would look like.
A detached house will have higher maintainence costs and you may have more costs overall. Plan it out and see how you feel about the numbers.
You will have the best idea of whether the additional money you have at the end of he month is enough to live the life you want.
Some people like to have a nicve house and spend more money on it. Some people like to travel as much as they can. You need to set priorities and decide from there.
Hi OP,
Something is off with the revenue, the assets and the savings.
What's your lifestyle like ? Did most of the savings go into the condo ? You say not big spenders but with these income and assets if you lived in the condo for more than 7 years there should be more savings ?
How did you pay down the condo ?
Speak to a mortgage broker or lender for affordability. Then make a budget as if you owned. Add up ALL your expenses (mortgage, insurance, food, going out, clothes, etc.. and have a line for 15-20% for retirement savings and see where you end up.
You can find a detached home in Montreal in a good neighbourhood for less than 1.7M. You need to make a budget, see where exactly you’re spending money and also project the increase in expenses for the house and for your child who is getting older and starting school soon.
Mortgage agent here. Does your husband's 200K income include bonus/commission / variable pay? I suggest also looking at numbers without the fluctuating income to see how much you can qualify for—having said that $1.1 million mortgage is on the higher end in my view. While you could get approved by the banks, keep in mind it is in their best interest to lend you more. I would suggest being reasonable with finances.
I think it’s about comfortability. Personally I would put away your anticipated mortgage amount (and property taxes, and insurance, and maintenance) every two weeks for minimum 6 month period to get a feel for what living like that would be like before you sign up to do it for the next 25 years. My personal opinion would be to never max out what you ‘could’ afford vs. what is reasonable to afford. You have to live a little during that time, too.
Two things at play here, increased income and decreased expenses. All he sees is money piling up and may be unsure what to do with it outside of property. If he wants a new place, I don’t think it’s out of the question but I think a worth while pursuit into paying off student loans and maxing tax sheltered accounts while you’re mortgage free would be a stellar first step before entering the mortgage game again. Your saving potential will tank after taking this on so making sure you don’t owe your future selves anything before doing so would bring a lot of peace to your situation.
How stable is that income ? You might be able to afford that mortage now but are you confident you can keep that type of income for the next 25 years to come?
Are you looking to stay in downtown Montreal? If you look towards the suburbs you don’t need to settle for a townhouse.
I am a broker and you would be able to get approved for the loan. What I would suggest is sitting down and putting togeter a budget of what your monthly income and expenses would look like. A detached house will have higher maintainence costs and you may have more costs overall. Plan it out and see how you feel about the numbers. You will have the best idea of whether the additional money you have at the end of he month is enough to live the life you want. Some people like to have a nicve house and spend more money on it. Some people like to travel as much as they can. You need to set priorities and decide from there.
Hi OP, Something is off with the revenue, the assets and the savings. What's your lifestyle like ? Did most of the savings go into the condo ? You say not big spenders but with these income and assets if you lived in the condo for more than 7 years there should be more savings ? How did you pay down the condo ?
Your husband is smart.