Use this calculator to see the home you can afford if you make $180,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $475,356.1
Okay, so let's imagine you make $180,000 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 $34,200 a year, or $2,850 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 ($15,000), you can only spend up to $4,800 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $670.0K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $15,000. With 6% interest, you will receive a loan of $745.0K (without down payment).
Your monthly interest payment remains the same $4,800
You will make total 300 installments
You will have to pay total amount of $1,440,000, which is 93.29% more than your original loan amount ($744,992.95)
For 6% interest, you will receive a loan of $800.6K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $4,800
You will make total 360 installments
You will have to pay total amount of $1,728,000, which is 115.84% more than your original loan amount ($800,599.75)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,800 | 20 | 1% | $1,043,718.07 |
| $4,800 | 20 | 2% | $948,835.37 |
| $4,800 | 20 | 3% | $865,492.39 |
| $4,800 | 20 | 4% | $792,104.92 |
| $4,800 | 20 | 5% | $727,321.5 |
| $4,800 | 20 | 6% | $669,987.7 |
| $4,800 | 20 | 7% | $619,116.03 |
| $4,800 | 20 | 8% | $573,860.6 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,800 | 25 | 1% | $1,273,640.44 |
| $4,800 | 25 | 2% | $1,132,464.52 |
| $4,800 | 25 | 3% | $1,012,206.98 |
| $4,800 | 25 | 4% | $909,371.92 |
| $4,800 | 25 | 5% | $821,088.23 |
| $4,800 | 25 | 6% | $744,992.95 |
| $4,800 | 25 | 7% | $679,137.14 |
| $4,800 | 25 | 8% | $621,909.71 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,800 | 30 | 1% | $1,492,353.92 |
| $4,800 | 30 | 2% | $1,298,632.88 |
| $4,800 | 30 | 3% | $1,138,509.03 |
| $4,800 | 30 | 4% | $1,005,413.95 |
| $4,800 | 30 | 5% | $894,151.76 |
| $4,800 | 30 | 6% | $800,599.75 |
| $4,800 | 30 | 7% | $721,476.33 |
| $4,800 | 30 | 8% | $654,160.77 |