Use this calculator to see the home you can afford if you make $110,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $290,495.4
Okay, so let's imagine you make $110,000 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 $20,900 a year, or $1,741.67 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 ($9,166.67), you can only spend up to $2,933.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $409.4K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $9,166.67. With 6% interest, you will receive a loan of $455.3K (without down payment).
Your monthly interest payment remains the same $2,933.33
You will make total 300 installments
You will have to pay total amount of $880,000, which is 93.29% more than your original loan amount ($455,273.47)
For 6% interest, you will receive a loan of $489.3K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,933.33
You will make total 360 installments
You will have to pay total amount of $1,056,000, which is 115.84% more than your original loan amount ($489,255.4)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,933.33 | 20 | 1% | $637,827.71 |
| $2,933.33 | 20 | 2% | $579,843.84 |
| $2,933.33 | 20 | 3% | $528,912.02 |
| $2,933.33 | 20 | 4% | $484,064.12 |
| $2,933.33 | 20 | 5% | $444,474.25 |
| $2,933.33 | 20 | 6% | $409,436.93 |
| $2,933.33 | 20 | 7% | $378,348.69 |
| $2,933.33 | 20 | 8% | $350,692.59 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,933.33 | 25 | 1% | $778,335.83 |
| $2,933.33 | 25 | 2% | $692,061.65 |
| $2,933.33 | 25 | 3% | $618,570.93 |
| $2,933.33 | 25 | 4% | $555,727.28 |
| $2,933.33 | 25 | 5% | $501,776.14 |
| $2,933.33 | 25 | 6% | $455,273.47 |
| $2,933.33 | 25 | 7% | $415,028.25 |
| $2,933.33 | 25 | 8% | $380,055.93 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,933.33 | 30 | 1% | $911,994.06 |
| $2,933.33 | 30 | 2% | $793,608.98 |
| $2,933.33 | 30 | 3% | $695,755.52 |
| $2,933.33 | 30 | 4% | $614,419.64 |
| $2,933.33 | 30 | 5% | $546,426.08 |
| $2,933.33 | 30 | 6% | $489,255.4 |
| $2,933.33 | 30 | 7% | $440,902.2 |
| $2,933.33 | 30 | 8% | $399,764.92 |