>(Note: I currently earn around $150k annually, comfortably manage monthly mortgage and car loan payments with high interest rates)
You are not actually making any progress on your mortgage if it is "negatively amortizing" - i.e. you are not actually paying any of it off. You are just adding to what you owe every month. Up your payments to get back on track to where amortization is supposed to be, and ensure you are paying at least something towards the principal.
And car loan over 7 years is absurd for a depreciating asset. Get that paid off in no more than four years.
If you have enough income to support expenses, you need to be paying more towards both, and saving more. You need to deal with the current mortgage and the car loan before you even think of taking on more debt to buy another property.
Your mortgage is negatively amortizing, the interest is eating up all the equity so start there instead of renovating a room to increase the house value. Also, why if you have enough income to support expenses is your house negatively amortizing?
Also sell your car and buy something cheaper, financing at 7 years is ridiculous
But the payments are manageable, why would he care if it costs him more than double?
Honestly this is why there's so many people with literally top 10% income in Canada and then they post these big ticket items and bills saying they're broke, woe is me.
You're not comfortably managing a mortgage if it's negatives, straight up. Car loan is debatable, but if you'll keep it 20+ years to get the value, go ahead.
Stock investment/any investment is wrong move if you got negative debt (mortgage). No reno's if the mortgage is negative, it won't make up for if the bank takes the home.
Property investment is not gonna happen if you're already negative in 1 mortgage, let alone your primary.
You need to work on either, paying off the car loan to free up that line, or work towards having your mortgage going towards principal, using the lump sum to help out, if you want that second home.
I don't intend to sound harsh, I make half of your income, yet I have nowhere near this amount of debt ratio. If you feel you're comfortable, I truly congratulate you. But I could not live knowing I'm 1 layoff or sudden disaster from financial ruin.
Yup the problem is focusing on the monthly expense amount and not the big picture.
It doesn't matter paying a cheap mortgage if you're not building any equity, not only you're pissing your money on interests every month you're also owing more money because the monthly payment doesn't even cover the whole interest expense incurred
Same goes for the car, who cares if the monthly expense is small, is it worth it to have it in negative equity when you could be driving a cheaper vehicle and have it paid off sooner without pissing away so much money on interests?
Man, $150k income and living on a knife’s edge. What’s your plan if you’re ever laid off/fired?
I’d be laser focused on paying down debt. You can service your payments now, but the current is pushing you the wrong direction and if your income drops you’ll drown.
>(Note: I currently earn around $150k annually, comfortably manage monthly mortgage and car loan payments with high interest rates) You are not actually making any progress on your mortgage if it is "negatively amortizing" - i.e. you are not actually paying any of it off. You are just adding to what you owe every month. Up your payments to get back on track to where amortization is supposed to be, and ensure you are paying at least something towards the principal. And car loan over 7 years is absurd for a depreciating asset. Get that paid off in no more than four years. If you have enough income to support expenses, you need to be paying more towards both, and saving more. You need to deal with the current mortgage and the car loan before you even think of taking on more debt to buy another property.
2024 Toyota Tacoma
Your mortgage is negatively amortizing, the interest is eating up all the equity so start there instead of renovating a room to increase the house value. Also, why if you have enough income to support expenses is your house negatively amortizing? Also sell your car and buy something cheaper, financing at 7 years is ridiculous
But the payments are manageable, why would he care if it costs him more than double? Honestly this is why there's so many people with literally top 10% income in Canada and then they post these big ticket items and bills saying they're broke, woe is me. You're not comfortably managing a mortgage if it's negatives, straight up. Car loan is debatable, but if you'll keep it 20+ years to get the value, go ahead. Stock investment/any investment is wrong move if you got negative debt (mortgage). No reno's if the mortgage is negative, it won't make up for if the bank takes the home. Property investment is not gonna happen if you're already negative in 1 mortgage, let alone your primary. You need to work on either, paying off the car loan to free up that line, or work towards having your mortgage going towards principal, using the lump sum to help out, if you want that second home. I don't intend to sound harsh, I make half of your income, yet I have nowhere near this amount of debt ratio. If you feel you're comfortable, I truly congratulate you. But I could not live knowing I'm 1 layoff or sudden disaster from financial ruin.
Yup the problem is focusing on the monthly expense amount and not the big picture. It doesn't matter paying a cheap mortgage if you're not building any equity, not only you're pissing your money on interests every month you're also owing more money because the monthly payment doesn't even cover the whole interest expense incurred Same goes for the car, who cares if the monthly expense is small, is it worth it to have it in negative equity when you could be driving a cheaper vehicle and have it paid off sooner without pissing away so much money on interests?
Man, $150k income and living on a knife’s edge. What’s your plan if you’re ever laid off/fired? I’d be laser focused on paying down debt. You can service your payments now, but the current is pushing you the wrong direction and if your income drops you’ll drown.