Use this calculator to see the home you can afford if you make $11,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $29,049.54
Okay, so let's imagine you make $11,000 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 $2,090 a year, or $174.17 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 ($916.67), you can only spend up to $293.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $40.9K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $916.67. With 6% interest, you will receive a loan of $45.5K (without down payment).
Your monthly interest payment remains the same $293.33
You will make total 300 installments
You will have to pay total amount of $88,000, which is 93.29% more than your original loan amount ($45,527.35)
For 6% interest, you will receive a loan of $48.9K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $293.33
You will make total 360 installments
You will have to pay total amount of $105,600, which is 115.84% more than your original loan amount ($48,925.54)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $293.33 | 20 | 1% | $63,782.77 |
| $293.33 | 20 | 2% | $57,984.38 |
| $293.33 | 20 | 3% | $52,891.2 |
| $293.33 | 20 | 4% | $48,406.41 |
| $293.33 | 20 | 5% | $44,447.43 |
| $293.33 | 20 | 6% | $40,943.69 |
| $293.33 | 20 | 7% | $37,834.87 |
| $293.33 | 20 | 8% | $35,069.26 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $293.33 | 25 | 1% | $77,833.58 |
| $293.33 | 25 | 2% | $69,206.17 |
| $293.33 | 25 | 3% | $61,857.09 |
| $293.33 | 25 | 4% | $55,572.73 |
| $293.33 | 25 | 5% | $50,177.61 |
| $293.33 | 25 | 6% | $45,527.35 |
| $293.33 | 25 | 7% | $41,502.82 |
| $293.33 | 25 | 8% | $38,005.59 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $293.33 | 30 | 1% | $91,199.41 |
| $293.33 | 30 | 2% | $79,360.9 |
| $293.33 | 30 | 3% | $69,575.55 |
| $293.33 | 30 | 4% | $61,441.96 |
| $293.33 | 30 | 5% | $54,642.61 |
| $293.33 | 30 | 6% | $48,925.54 |
| $293.33 | 30 | 7% | $44,090.22 |
| $293.33 | 30 | 8% | $39,976.49 |