Use this calculator to see the home you can afford if you make $185,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $488,560.44
Okay, so let's imagine you make $185,000 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 $35,150 a year, or $2,929.17 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 ($15,416.67), you can only spend up to $4,933.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $688.6K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $15,416.67. With 6% interest, you will receive a loan of $765.7K (without down payment).
Your monthly interest payment remains the same $4,933.33
You will make total 300 installments
You will have to pay total amount of $1,480,000, which is 93.29% more than your original loan amount ($765,687.2)
For 6% interest, you will receive a loan of $822.8K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $4,933.33
You will make total 360 installments
You will have to pay total amount of $1,776,000, which is 115.84% more than your original loan amount ($822,838.63)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,933.33 | 20 | 1% | $1,072,710.24 |
| $4,933.33 | 20 | 2% | $975,191.91 |
| $4,933.33 | 20 | 3% | $889,533.84 |
| $4,933.33 | 20 | 4% | $814,107.83 |
| $4,933.33 | 20 | 5% | $747,524.88 |
| $4,933.33 | 20 | 6% | $688,598.47 |
| $4,933.33 | 20 | 7% | $636,313.7 |
| $4,933.33 | 20 | 8% | $589,801.17 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,933.33 | 25 | 1% | $1,309,019.35 |
| $4,933.33 | 25 | 2% | $1,163,921.87 |
| $4,933.33 | 25 | 3% | $1,040,323.84 |
| $4,933.33 | 25 | 4% | $934,632.25 |
| $4,933.33 | 25 | 5% | $843,896.23 |
| $4,933.33 | 25 | 6% | $765,687.2 |
| $4,933.33 | 25 | 7% | $698,002.06 |
| $4,933.33 | 25 | 8% | $639,184.98 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $4,933.33 | 30 | 1% | $1,533,808.2 |
| $4,933.33 | 30 | 2% | $1,334,706.01 |
| $4,933.33 | 30 | 3% | $1,170,134.28 |
| $4,933.33 | 30 | 4% | $1,033,342.12 |
| $4,933.33 | 30 | 5% | $918,989.31 |
| $4,933.33 | 30 | 6% | $822,838.63 |
| $4,933.33 | 30 | 7% | $741,517.34 |
| $4,933.33 | 30 | 8% | $672,331.9 |