Use this calculator to see the home you can afford if you make $160,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $422,538.76
Okay, so let's imagine you make $160,000 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 $30,400 a year, or $2,533.33 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 ($13,333.33), you can only spend up to $4,266.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $595.5K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $13,333.33. With 6% interest, you will receive a loan of $662.2K (without down payment).
Your monthly interest payment remains the same $4,266.67
You will make total 300 installments
You will have to pay total amount of $1,280,000, which is 93.29% more than your original loan amount ($662,215.95)
For 6% interest, you will receive a loan of $711.6K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $4,266.67
You will make total 360 installments
You will have to pay total amount of $1,536,000, which is 115.84% more than your original loan amount ($711,644.22)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,266.67 | 20 | 1% | $927,749.4 |
| $4,266.67 | 20 | 2% | $843,409.22 |
| $4,266.67 | 20 | 3% | $769,326.57 |
| $4,266.67 | 20 | 4% | $704,093.26 |
| $4,266.67 | 20 | 5% | $646,508 |
| $4,266.67 | 20 | 6% | $595,544.63 |
| $4,266.67 | 20 | 7% | $550,325.36 |
| $4,266.67 | 20 | 8% | $510,098.31 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,266.67 | 25 | 1% | $1,132,124.84 |
| $4,266.67 | 25 | 2% | $1,006,635.13 |
| $4,266.67 | 25 | 3% | $899,739.53 |
| $4,266.67 | 25 | 4% | $808,330.59 |
| $4,266.67 | 25 | 5% | $729,856.2 |
| $4,266.67 | 25 | 6% | $662,215.95 |
| $4,266.67 | 25 | 7% | $603,677.45 |
| $4,266.67 | 25 | 8% | $552,808.63 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,266.67 | 30 | 1% | $1,326,536.82 |
| $4,266.67 | 30 | 2% | $1,154,340.34 |
| $4,266.67 | 30 | 3% | $1,012,008.03 |
| $4,266.67 | 30 | 4% | $893,701.29 |
| $4,266.67 | 30 | 5% | $794,801.57 |
| $4,266.67 | 30 | 6% | $711,644.22 |
| $4,266.67 | 30 | 7% | $641,312.29 |
| $4,266.67 | 30 | 8% | $581,476.24 |