Use this calculator to see the home you can afford if you make $121,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $319,544.93
Okay, so let's imagine you make $121,000 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 $22,990 a year, or $1,915.83 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 ($10,083.33), you can only spend up to $3,226.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $450.4K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $10,083.33. With 6% interest, you will receive a loan of $500.8K (without down payment).
Your monthly interest payment remains the same $3,226.67
You will make total 300 installments
You will have to pay total amount of $968,000, which is 93.29% more than your original loan amount ($500,800.81)
For 6% interest, you will receive a loan of $538.2K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $3,226.67
You will make total 360 installments
You will have to pay total amount of $1,161,600, which is 115.84% more than your original loan amount ($538,180.94)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,226.67 | 20 | 1% | $701,610.48 |
| $3,226.67 | 20 | 2% | $637,828.22 |
| $3,226.67 | 20 | 3% | $581,803.22 |
| $3,226.67 | 20 | 4% | $532,470.53 |
| $3,226.67 | 20 | 5% | $488,921.68 |
| $3,226.67 | 20 | 6% | $450,380.62 |
| $3,226.67 | 20 | 7% | $416,183.55 |
| $3,226.67 | 20 | 8% | $385,761.85 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,226.67 | 25 | 1% | $856,169.41 |
| $3,226.67 | 25 | 2% | $761,267.82 |
| $3,226.67 | 25 | 3% | $680,428.02 |
| $3,226.67 | 25 | 4% | $611,300.01 |
| $3,226.67 | 25 | 5% | $551,953.75 |
| $3,226.67 | 25 | 6% | $500,800.81 |
| $3,226.67 | 25 | 7% | $456,531.07 |
| $3,226.67 | 25 | 8% | $418,061.53 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,226.67 | 30 | 1% | $1,003,193.47 |
| $3,226.67 | 30 | 2% | $872,969.88 |
| $3,226.67 | 30 | 3% | $765,331.07 |
| $3,226.67 | 30 | 4% | $675,861.6 |
| $3,226.67 | 30 | 5% | $601,068.68 |
| $3,226.67 | 30 | 6% | $538,180.94 |
| $3,226.67 | 30 | 7% | $484,992.42 |
| $3,226.67 | 30 | 8% | $439,741.41 |