Use this calculator to see the home you can afford if you make $175,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $462,151.76
Okay, so let's imagine you make $175,000 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 $33,250 a year, or $2,770.83 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 ($14,583.33), you can only spend up to $4,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $651.4K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $14,583.33. With 6% interest, you will receive a loan of $724.3K (without down payment).
Your monthly interest payment remains the same $4,666.67
You will make total 300 installments
You will have to pay total amount of $1,400,000, which is 93.29% more than your original loan amount ($724,298.7)
For 6% interest, you will receive a loan of $778.4K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $4,666.67
You will make total 360 installments
You will have to pay total amount of $1,680,000, which is 115.84% more than your original loan amount ($778,360.87)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,666.67 | 20 | 1% | $1,014,725.9 |
| $4,666.67 | 20 | 2% | $922,478.83 |
| $4,666.67 | 20 | 3% | $841,450.93 |
| $4,666.67 | 20 | 4% | $770,102.01 |
| $4,666.67 | 20 | 5% | $707,118.13 |
| $4,666.67 | 20 | 6% | $651,376.93 |
| $4,666.67 | 20 | 7% | $601,918.36 |
| $4,666.67 | 20 | 8% | $557,920.03 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,666.67 | 25 | 1% | $1,238,261.54 |
| $4,666.67 | 25 | 2% | $1,101,007.17 |
| $4,666.67 | 25 | 3% | $984,090.12 |
| $4,666.67 | 25 | 4% | $884,111.59 |
| $4,666.67 | 25 | 5% | $798,280.22 |
| $4,666.67 | 25 | 6% | $724,298.7 |
| $4,666.67 | 25 | 7% | $660,272.22 |
| $4,666.67 | 25 | 8% | $604,634.44 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,666.67 | 30 | 1% | $1,450,899.65 |
| $4,666.67 | 30 | 2% | $1,262,559.74 |
| $4,666.67 | 30 | 3% | $1,106,883.78 |
| $4,666.67 | 30 | 4% | $977,485.79 |
| $4,666.67 | 30 | 5% | $869,314.21 |
| $4,666.67 | 30 | 6% | $778,360.87 |
| $4,666.67 | 30 | 7% | $701,435.32 |
| $4,666.67 | 30 | 8% | $635,989.64 |