Use this calculator to see the home you can afford if you make $200,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $528,173.45
Okay, so let's imagine you make $200,000 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 $38,000 a year, or $3,166.67 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 ($16,666.67), you can only spend up to $5,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $744.4K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $16,666.67. With 6% interest, you will receive a loan of $827.8K (without down payment).
Your monthly interest payment remains the same $5,333.33
You will make total 300 installments
You will have to pay total amount of $1,600,000, which is 93.29% more than your original loan amount ($827,769.94)
For 6% interest, you will receive a loan of $889.6K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $5,333.33
You will make total 360 installments
You will have to pay total amount of $1,920,000, which is 115.84% more than your original loan amount ($889,555.28)
The longer the loan duration, the more money you will pay collectively
Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
---|---|---|---|
$5,333.33 | 20 | 1% | $1,159,686.75 |
$5,333.33 | 20 | 2% | $1,054,261.52 |
$5,333.33 | 20 | 3% | $961,658.21 |
$5,333.33 | 20 | 4% | $880,116.58 |
$5,333.33 | 20 | 5% | $808,135 |
$5,333.33 | 20 | 6% | $744,430.78 |
$5,333.33 | 20 | 7% | $687,906.7 |
$5,333.33 | 20 | 8% | $637,622.89 |
Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
---|---|---|---|
$5,333.33 | 25 | 1% | $1,415,156.05 |
$5,333.33 | 25 | 2% | $1,258,293.91 |
$5,333.33 | 25 | 3% | $1,124,674.42 |
$5,333.33 | 25 | 4% | $1,010,413.24 |
$5,333.33 | 25 | 5% | $912,320.25 |
$5,333.33 | 25 | 6% | $827,769.94 |
$5,333.33 | 25 | 7% | $754,596.82 |
$5,333.33 | 25 | 8% | $691,010.79 |
Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
---|---|---|---|
$5,333.33 | 30 | 1% | $1,658,171.03 |
$5,333.33 | 30 | 2% | $1,442,925.42 |
$5,333.33 | 30 | 3% | $1,265,010.03 |
$5,333.33 | 30 | 4% | $1,117,126.62 |
$5,333.33 | 30 | 5% | $993,501.96 |
$5,333.33 | 30 | 6% | $889,555.28 |
$5,333.33 | 30 | 7% | $801,640.36 |
$5,333.33 | 30 | 8% | $726,845.3 |