Use this calculator to see the home you can afford if you make $150,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $396,130.08
Okay, so let's imagine you make $150,000 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 $28,500 a year, or $2,375 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 ($12,500), you can only spend up to $4,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $558.3K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $12,500. With 6% interest, you will receive a loan of $620.8K (without down payment).
Your monthly interest payment remains the same $4,000
You will make total 300 installments
You will have to pay total amount of $1,200,000, which is 93.29% more than your original loan amount ($620,827.46)
For 6% interest, you will receive a loan of $667.2K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $4,000
You will make total 360 installments
You will have to pay total amount of $1,440,000, which is 115.84% more than your original loan amount ($667,166.46)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,000 | 20 | 1% | $869,765.06 |
| $4,000 | 20 | 2% | $790,696.14 |
| $4,000 | 20 | 3% | $721,243.66 |
| $4,000 | 20 | 4% | $660,087.43 |
| $4,000 | 20 | 5% | $606,101.25 |
| $4,000 | 20 | 6% | $558,323.09 |
| $4,000 | 20 | 7% | $515,930.03 |
| $4,000 | 20 | 8% | $478,217.17 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,000 | 25 | 1% | $1,061,367.04 |
| $4,000 | 25 | 2% | $943,720.43 |
| $4,000 | 25 | 3% | $843,505.81 |
| $4,000 | 25 | 4% | $757,809.93 |
| $4,000 | 25 | 5% | $684,240.19 |
| $4,000 | 25 | 6% | $620,827.46 |
| $4,000 | 25 | 7% | $565,947.61 |
| $4,000 | 25 | 8% | $518,258.09 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,000 | 30 | 1% | $1,243,628.27 |
| $4,000 | 30 | 2% | $1,082,194.07 |
| $4,000 | 30 | 3% | $948,757.53 |
| $4,000 | 30 | 4% | $837,844.96 |
| $4,000 | 30 | 5% | $745,126.47 |
| $4,000 | 30 | 6% | $667,166.46 |
| $4,000 | 30 | 7% | $601,230.27 |
| $4,000 | 30 | 8% | $545,133.98 |