Use this calculator to see the home you can afford if you make $125,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $330,108.4
Okay, so let's imagine you make $125,000 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 $23,750 a year, or $1,979.17 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 ($10,416.67), you can only spend up to $3,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $465.3K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $10,416.67. With 6% interest, you will receive a loan of $517.4K (without down payment).
Your monthly interest payment remains the same $3,333.33
You will make total 300 installments
You will have to pay total amount of $1,000,000, which is 93.29% more than your original loan amount ($517,356.21)
For 6% interest, you will receive a loan of $556.0K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $3,333.33
You will make total 360 installments
You will have to pay total amount of $1,200,000, which is 115.84% more than your original loan amount ($555,972.05)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,333.33 | 20 | 1% | $724,804.22 |
| $3,333.33 | 20 | 2% | $658,913.45 |
| $3,333.33 | 20 | 3% | $601,036.38 |
| $3,333.33 | 20 | 4% | $550,072.86 |
| $3,333.33 | 20 | 5% | $505,084.38 |
| $3,333.33 | 20 | 6% | $465,269.24 |
| $3,333.33 | 20 | 7% | $429,941.69 |
| $3,333.33 | 20 | 8% | $398,514.31 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,333.33 | 25 | 1% | $884,472.53 |
| $3,333.33 | 25 | 2% | $786,433.69 |
| $3,333.33 | 25 | 3% | $702,921.51 |
| $3,333.33 | 25 | 4% | $631,508.28 |
| $3,333.33 | 25 | 5% | $570,200.16 |
| $3,333.33 | 25 | 6% | $517,356.21 |
| $3,333.33 | 25 | 7% | $471,623.01 |
| $3,333.33 | 25 | 8% | $431,881.74 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,333.33 | 30 | 1% | $1,036,356.89 |
| $3,333.33 | 30 | 2% | $901,828.39 |
| $3,333.33 | 30 | 3% | $790,631.27 |
| $3,333.33 | 30 | 4% | $698,204.13 |
| $3,333.33 | 30 | 5% | $620,938.72 |
| $3,333.33 | 30 | 6% | $555,972.05 |
| $3,333.33 | 30 | 7% | $501,025.23 |
| $3,333.33 | 30 | 8% | $454,278.31 |