Use this calculator to see the home you can afford if you make $240,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $633,808.13
Okay, so let's imagine you make $240,000 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 $45,600 a year, or $3,800 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 ($20,000), you can only spend up to $6,400 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $893.3K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $20,000. With 6% interest, you will receive a loan of $993.3K (without down payment).
Your monthly interest payment remains the same $6,400
You will make total 300 installments
You will have to pay total amount of $1,920,000, which is 93.29% more than your original loan amount ($993,323.93)
For 6% interest, you will receive a loan of $1.1M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $6,400
You will make total 360 installments
You will have to pay total amount of $2,304,000, which is 115.84% more than your original loan amount ($1,067,466.33)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $6,400 | 20 | 1% | $1,391,624.1 |
| $6,400 | 20 | 2% | $1,265,113.82 |
| $6,400 | 20 | 3% | $1,153,989.85 |
| $6,400 | 20 | 4% | $1,056,139.89 |
| $6,400 | 20 | 5% | $969,762 |
| $6,400 | 20 | 6% | $893,316.94 |
| $6,400 | 20 | 7% | $825,488.04 |
| $6,400 | 20 | 8% | $765,147.47 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $6,400 | 25 | 1% | $1,698,187.26 |
| $6,400 | 25 | 2% | $1,509,952.69 |
| $6,400 | 25 | 3% | $1,349,609.3 |
| $6,400 | 25 | 4% | $1,212,495.89 |
| $6,400 | 25 | 5% | $1,094,784.3 |
| $6,400 | 25 | 6% | $993,323.93 |
| $6,400 | 25 | 7% | $905,516.18 |
| $6,400 | 25 | 8% | $829,212.94 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $6,400 | 30 | 1% | $1,989,805.23 |
| $6,400 | 30 | 2% | $1,731,510.51 |
| $6,400 | 30 | 3% | $1,518,012.04 |
| $6,400 | 30 | 4% | $1,340,551.94 |
| $6,400 | 30 | 5% | $1,192,202.35 |
| $6,400 | 30 | 6% | $1,067,466.33 |
| $6,400 | 30 | 7% | $961,968.43 |
| $6,400 | 30 | 8% | $872,214.36 |