Prince Harry and Meghan Markle's staggering mortgage payments on $14 million home revealed

The Duke and Duchess of Sussex left the Royal Family's inner circle in 2020 and settled into a Californian mansion shortly afterwards.

Prince Harry and Meghan have a mortgage

On 18th June 2020, the sale of the Sussexes' Montecito mansion went through. Although, during her The Cut interview, Meghan revealed that she and her husband weren't sure they could afford the nine-bedroom home. She said:

We didn't have jobs, so we were just not going to come and see this house. It's like, 'I don't want to go and look at all the things that I can't afford, that doesn't feel good'.

Prince Harry and Meghan didn't pay for their Montecito mansion outright. That's to say, the Sussexes allegedly had to borrow a staggering $9,522,500 from the City National Bank.

According to Daily Mail, Prince Harry and Meghan's monthly mortgage payments cost around $40,000. According to Worlddata.info, that's nearly as high as the average annual income for a British or Canadian employee – $45,380/year and $48,310/year, respectively.

Not as unusual as it may seem

As odd as it may seem that uber-wealthy celebrities don't pay for their mansions outright, according to Daily Mail, it's not as uncommon as one might think. One celebrity wealth expert claimed it could be more advantageous for the super-rich to take out a mortgage than to pay for their mansions outright. However, it's likely that the mortgages aren't the standard 30-year fixed product.

According to research carried out by the newspaper, Beyoncé and Jay-Z, Angelina Jolie, and Adele are among the Hollywood stars with the most excessive mortgages.

Forbes magazine explained that there are multiple reasons behind the choice. For the Sussexes, it could boil down to privacy needs. The publication explains that the couple likely took out a Privacy Trust with one of their financial professionals to serve as trustee. Often, the trustee's address is on public documents to avoid using the address of the actual buyer.

Although, there is no way of knowing the reasoning behind the staggering mortgage. However, the question on many people's lips is whether the Sussexes can generate the necessary income to support their wealthy lifestyle.

Sources used:

Daily Mail: Drake, Harry and Meghan, and Angelina Jolie are among the Hollywood stars with the most EXORBITANT loans on their mansions - Beyoncé and Jay-Z top the list borrowing $52.8MILLION on their $88million Bel Air digs

Forbes: What Prince Harry And Meghan Markle's Home Purchase Shows Us About Financial Planning For The Wealthy

Worlddata.info: Average income around the world

Cosmopolitan: Meghan Markle on the struggle of 'not being able to afford' her $14m house