Use this calculator to see the home you can afford if you make $100,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $264,086.72
Okay, so let's imagine you make $100,000 a year. That's a lot of money! Now, let's figure out how much of that you can spend on a house.
A person called a mortgage broker can help you decide. They might say you can spend 19% of your yearly income on your mortgage. That means you can spend $19,000 a year, or $1,583.33 each month on your mortgage.
According to Canada Mortgage and Housing Corporation ,upto 32%(preferred) of gross monthly household income can be spent on P.I.T.H (Principal, Interest, Taxes and Heating Solutions) The maximum limit is 39%.
So, according to your monthly income ($8,333.33), you can only spend up to $2,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $372.2K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $8,333.33. With 6% interest, you will receive a loan of $413.9K (without down payment).
Your monthly interest payment remains the same $2,666.67
You will make total 300 installments
You will have to pay total amount of $800,000, which is 93.29% more than your original loan amount ($413,884.97)
For 6% interest, you will receive a loan of $444.8K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,666.67
You will make total 360 installments
You will have to pay total amount of $960,000, which is 115.84% more than your original loan amount ($444,777.64)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,666.67 | 20 | 1% | $579,843.37 |
| $2,666.67 | 20 | 2% | $527,130.76 |
| $2,666.67 | 20 | 3% | $480,829.11 |
| $2,666.67 | 20 | 4% | $440,058.29 |
| $2,666.67 | 20 | 5% | $404,067.5 |
| $2,666.67 | 20 | 6% | $372,215.39 |
| $2,666.67 | 20 | 7% | $343,953.35 |
| $2,666.67 | 20 | 8% | $318,811.44 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,666.67 | 25 | 1% | $707,578.02 |
| $2,666.67 | 25 | 2% | $629,146.96 |
| $2,666.67 | 25 | 3% | $562,337.21 |
| $2,666.67 | 25 | 4% | $505,206.62 |
| $2,666.67 | 25 | 5% | $456,160.13 |
| $2,666.67 | 25 | 6% | $413,884.97 |
| $2,666.67 | 25 | 7% | $377,298.41 |
| $2,666.67 | 25 | 8% | $345,505.39 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,666.67 | 30 | 1% | $829,085.51 |
| $2,666.67 | 30 | 2% | $721,462.71 |
| $2,666.67 | 30 | 3% | $632,505.02 |
| $2,666.67 | 30 | 4% | $558,563.31 |
| $2,666.67 | 30 | 5% | $496,750.98 |
| $2,666.67 | 30 | 6% | $444,777.64 |
| $2,666.67 | 30 | 7% | $400,820.18 |
| $2,666.67 | 30 | 8% | $363,422.65 |