200k income - 1m dollar home - thoughts?
My next move is a big move for me and it's been keeping me up the past few nights. I am in the process of buying a house and I want to get some unbiased opinions.
- 28 years of age
- just married, want to start a family and looking for new home
- 200k annual gross household income
- no external debts. no car payments or credit card or line of credit.
- no financial obligations to parents/siblings as they do well for themselves
- wife and I work in essential services
- we've owned 2 condos before so are well accustomed to having a mortgage and paying bills and everything that comes with adulthood (with the exception of kids!)
We're looking at a $1,050,000 home. We have 375k down payment and obtained a mortgage for 1.89% on a 5 year term. Mortgage comes to 2800 rounded up. As a family we could still live on my salary alone. Wife will be responsible for saving and other some day to day stuff. It's a Vancouver property in a good clean neighborhood so we strongly believe it will hold its value relatively well. Home is 3 years old and inspection report was strong with almost zero defects noted. Warranty still in tact.
Objectively speaking the mortgage size is daunting. But we are heading into this as prepared as we can be, as debt free as we can be, with good saving habits in mind. Just want to get thoughts if anyone else has been in a similar situation or whether you have general advice based on the circumstances set out above.