Use this calculator to see the home you can afford if you make $105,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $277,291.06
Okay, so let's imagine you make $105,000 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 $19,950 a year, or $1,662.5 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 ($8,750), you can only spend up to $2,800 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $390.8K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $8,750. With 6% interest, you will receive a loan of $434.6K (without down payment).
Your monthly interest payment remains the same $2,800
You will make total 300 installments
You will have to pay total amount of $840,000, which is 93.29% more than your original loan amount ($434,579.22)
For 6% interest, you will receive a loan of $467.0K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,800
You will make total 360 installments
You will have to pay total amount of $1,008,000, which is 115.84% more than your original loan amount ($467,016.52)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,800 | 20 | 1% | $608,835.54 |
| $2,800 | 20 | 2% | $553,487.3 |
| $2,800 | 20 | 3% | $504,870.56 |
| $2,800 | 20 | 4% | $462,061.2 |
| $2,800 | 20 | 5% | $424,270.88 |
| $2,800 | 20 | 6% | $390,826.16 |
| $2,800 | 20 | 7% | $361,151.02 |
| $2,800 | 20 | 8% | $334,752.02 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,800 | 25 | 1% | $742,956.93 |
| $2,800 | 25 | 2% | $660,604.3 |
| $2,800 | 25 | 3% | $590,454.07 |
| $2,800 | 25 | 4% | $530,466.95 |
| $2,800 | 25 | 5% | $478,968.13 |
| $2,800 | 25 | 6% | $434,579.22 |
| $2,800 | 25 | 7% | $396,163.33 |
| $2,800 | 25 | 8% | $362,780.66 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,800 | 30 | 1% | $870,539.79 |
| $2,800 | 30 | 2% | $757,535.85 |
| $2,800 | 30 | 3% | $664,130.27 |
| $2,800 | 30 | 4% | $586,491.47 |
| $2,800 | 30 | 5% | $521,588.53 |
| $2,800 | 30 | 6% | $467,016.52 |
| $2,800 | 30 | 7% | $420,861.19 |
| $2,800 | 30 | 8% | $381,593.78 |