Use this calculator to see the home you can afford if you make $231,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $610,040.33
Okay, so let's imagine you make $231,000 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 $43,890 a year, or $3,657.5 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 ($19,250), you can only spend up to $6,160 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $859.8K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $19,250. With 6% interest, you will receive a loan of $956.1K (without down payment).
Your monthly interest payment remains the same $6,160
You will make total 300 installments
You will have to pay total amount of $1,848,000, which is 93.29% more than your original loan amount ($956,074.28)
For 6% interest, you will receive a loan of $1.0M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $6,160
You will make total 360 installments
You will have to pay total amount of $2,217,600, which is 115.84% more than your original loan amount ($1,027,436.34)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $6,160 | 20 | 1% | $1,339,438.19 |
| $6,160 | 20 | 2% | $1,217,672.05 |
| $6,160 | 20 | 3% | $1,110,715.23 |
| $6,160 | 20 | 4% | $1,016,534.65 |
| $6,160 | 20 | 5% | $933,395.93 |
| $6,160 | 20 | 6% | $859,817.55 |
| $6,160 | 20 | 7% | $794,532.24 |
| $6,160 | 20 | 8% | $736,454.44 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $6,160 | 25 | 1% | $1,634,505.24 |
| $6,160 | 25 | 2% | $1,453,329.47 |
| $6,160 | 25 | 3% | $1,298,998.95 |
| $6,160 | 25 | 4% | $1,167,027.3 |
| $6,160 | 25 | 5% | $1,053,729.89 |
| $6,160 | 25 | 6% | $956,074.28 |
| $6,160 | 25 | 7% | $871,559.32 |
| $6,160 | 25 | 8% | $798,117.46 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $6,160 | 30 | 1% | $1,915,187.53 |
| $6,160 | 30 | 2% | $1,666,578.86 |
| $6,160 | 30 | 3% | $1,461,086.59 |
| $6,160 | 30 | 4% | $1,290,281.24 |
| $6,160 | 30 | 5% | $1,147,494.76 |
| $6,160 | 30 | 6% | $1,027,436.34 |
| $6,160 | 30 | 7% | $925,894.62 |
| $6,160 | 30 | 8% | $839,506.32 |