My husband and I are looking to buy a new house with a mortgage of about 400K-500K and a downpayment of 200K-300K (max value of home:700k). (We currently own a home that we purchased for 300K, and will probably sell for 300K-350K. We owe around 125K on it.)
We are fairly young- 25 & 28 years old. I was on maternity leave for half of last year, and our gross income was still around 220K. We live in Canada. We are expecting to have more children (1 so far, another 1 later this year), with me working at least half the year, every year. (Unless we have twins or something.)
Our major expenses:
- $2400/mo. mortgage payments
- $2400/mo. childcare (me quitting work is out of the question; I need to maintain a yearly salary of 60k for a little while for immigration reasons)
We are able to manage our money and pay down bills OK. Whenever, at the end of the month, if there is extra money in our account, we either move it to savings or extra payments to our mortgage. Then at the end of the year, we take money from our savings and move into RRSPs to get a tax refund.
Our other savings amount to about 200k in RRSP, TFSA and just plain ol' savings.
My question is, should we be saving money or putting all our money into the mortgage? We have no other debts besides the mortgage. We both would like the mortgage paid off in 10 years...is it wise to pay it off in 10 years, or should we extend it? We're buying a large house, and probably won't be buying another one for the next 30-40 years.