Mariah Carey's $18.6M mortgage crisis: From $1M monthly designer splurges to selling properties at loss

NEW YORK CITY, NEW YORK: Mariah Carey's opulent lifestyle has come under scrutiny as reports revealed that she borrowed an astounding $18.6 million for her $9 million Manhattan penthouse.

The 55-year-old diva has racked up multi-million dollar mortgages totaling $18.6 million on her luxurious Tribeca apartment—of which $10.6 million was cashed out in loans.

Though the 'All I Want For Christmas Is You' singer is worth $350 million, it could be her alleged million-a-month spending habit that made her require these substantial cash infusions.

Mariah Carey borrowed whopping $18M for her $9M Manhattan penthouse

The 'We Belong Together' singer reportedly borrowed $18.6 million for her New York City penthouse, of which $10.6 million was for cash advances, as reported by the Daily Mail. It has been a financial roller coaster for the singer ever since.

Carey used a company Franklin Views LLC, which her business manager had established, to pay $9 million in cash for her Tribeca apartment in June 1999. Following her purchase, she combined the penthouse with another apartment below it.

She took out a $8 million loan from JPMorgan Chase Bank in 2009 and a $2.6 million loan from City National Bank in 2015, also called the 'Bank to the Stars' for providing large loans to wealthy customers at low interest rates.

According to the outlet, Carey refinanced her JPMorgan mortgage to an incredible $17.6 million in 2016 and received a $9.6 million advance, shortly before her divorce from Nick Cannon was finalized.

The loan was then increased to $18.6 million in 2018 and an additional $1 million was given to her.

According to reports, Carey has been selling properties despite having a net worth of $350 million. After purchasing the nine-bedroom Atlanta property for $5.65 million, she sold it for $3.92 million, a $1.73 million loss in just 18 months.

Mariah Carey's opulent lifestyle causing financial strain

According to real estate analysts, Mariah Carey might require these large lump sum payments for a few reasons.

In August 2016, as she borrowed the $9.6 million while divorcing Cannon, it was rumored that Cannon did not receive anything, other than a Ferrari and travel fees for seeing his two children, who were mainly under Carey's custody.

In 2022, Cannon said his ex-wife spends at least $150,000 each time she leaves the house, saying, "Mariah don't step out of the house, it cost her $150,000, $200,000 just to walk out of the house."

According to Doug Perry, a strategic financing expert at realestatebees.com, Carey might require the advances because her income is cyclical, and her biggest song, 'All I Want For Christmas Is You', largely generates royalties around the holidays.

"She generates more of her music royalties, endorsements and appearance fees during the holidays. If I was underwriting her as a borrower, I would average her income over a multi-year period," Perry told Daily Mail.

However, Perry claimed that Carey still has a sizable amount of equity remaining in her real estate empire to borrow against, with her Tribeca penthouse currently valued between $30 and $35 million.

"Mariah has cashed in on the equity created by that appreciation by taking out a series of larger and larger loans," Perry said.

He added, "She clearly took a bath on the Atlanta property she sold, and she put a lot of money into that house after she bought it."

"It could be a sign she needed cash, although she has available credit on the loan on her Tribeca penthouse she could have tapped, so it is more likely she wanted out of the property and was willing to take a large loss."

Mariah Carey possesses an 'obscenely expensive' lifestyle

According to reports, the 55-year-old music icon has a taste for finer things and spends an astounding $1 million every month on expensive gifts, luxury clothing, and other excessive spending.

Carey is said to spend "obscenely expensive" amounts on champagne, presents, and designer clothing.

Insiders revealed to the Daily Mail that the singer's 2016 split from billionaire James Packer wasn't only because of their personal differences but also because she was obsessed with "money, money, money." 

According to insiders, she spent $45,000 on dog spa treatments, $100,000 a month on exotic flowers, and $10,000 for hair and makeup each time.

Radar Online revealed in November that Carey spent up to $1 million per month on uncontrollably extravagant shopping sprees where she was purchasing "useless stuff" with "no price tag too high."

The singer-songwriter posted a video of herself on Instagram on Sunday, September 15, while she was practicing her song 'It's Like That' in preparation for some upcoming foreign tour dates.

Carey declared that she is returning to work after going through "a couple of rough weeks" following the deaths of her mother Patricia, 87, and her estranged sister Alison, 63, on the same day in August.