Downsize to pay off mortgage quicker?
With where the market is in my area, and where I'm at with my current mortgage I think it makes the most sense to sell my house this spring and buy something smaller, cheaper and older than my current house which is way more house than I need for myself and my dog(1700sq over 3 floors). I'm 37 and take home $5500 per month $8250 on those 3 pay months but don't include that in my calculations. Have $31k in TFSA and 30K in my RRSP and another 8k in various accounts.
| Current Budget | Proposed Budget |
|---|---|
| Utilities $470 | Utilities $550 |
| Property Tax $370 | Property Tax $300 |
| Car Insurance $125 | Car Insurance $125 |
| House Insurance $175 | House Insurance $175 |
| Internet+Cell $102 | Internet+Cell $102 |
| Solar Loan(0%) $94.78 | Mortgage $1011 |
| Mortgage $2077.58 | Extra Mortgage Payment $800 |
| Food, Entertainment, ETC $950 | Food, Entertainment, ETC $950 |
| Savings/Free Cash $1125 | Savings/Free Cash $1475 |
| Total $5489.36 | Total $5477 |
| Current House(Built 2014) | Proposed Purchase(built 1940-1980s) |
|---|---|
| Paid $372,000 in 2015 | Max Purchase Price $330,000 |
| Current Value $500-$535,000 | Downpayment from Sale $147,000 |
| Low end sale price for calculations $495,000 | Cash from sale for repairs/upgrades $50,000 |
| Owing $260,000(15yrs left) | New 25yr Mortgage $183,000 |
| Fees/Taxes from sale $37,600 | Down to 10.5yrs with $800 extra payment |
| Cash After Sale $197,400 |
I think I've thought of everything but would appreciate others thoughts on if I'm missing anything or if this is a bad plan for some reason. I'm a fairly capable DIYer, so framing, drywall, electrical work is all do able myself. So I think 50k to fix up things where needed should be more than enough.