u/mtbiker2k

Trying to make a long story short,

All in CAD here,

38M, wife and two small children.

Have 1.1m ($700k condo paid off and $400k in TFSA and RRSPs). I earn around $80k per year and my wife is working one day per week then home with the kid.

We are needing more space than our two bedroom unit has but to get a detached house here is around $2 million. A decent townhouse is just out of reach at around 1.5-1.6 million with the kind of mortgage I could be approved of at my income level. ~$280k plus the 1.1 million down payment.

Would it make sense to sell our current place, invest that plus our savings (1.1 million), use the returns from that plus add another $2k a month from my income to rent something for the time being? What would a typical monthly return from 1.1 million be after taxes and fees?

I’m thinking I could find decent rentals in the $5000 per month range so this might be the best bet until we start making more money and are approved for a bigger mortgage or more money falls into my lap?

Hopefully inheriting around $500k in the next few months.

Owe $118k on our mortgage. Will cost $1000 penalty to pay it off early. It’s a variable at 4% and the term ends in a year.

Would like to purchase a bigger place in the next few years and wondering what the right move is right now. I’m leaning toward just paying off the mortgage, investing the rest and then doing an auto withdrawal every month into investments of approximately my current mortgage payments.

Any thoughts?