Use this calculator to see the home you can afford if you make $270,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $713,034.15
Okay, so let's imagine you make $270,000 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 $51,300 a year, or $4,275 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 ($22,500), you can only spend up to $7,200 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.0M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $22,500. With 6% interest, you will receive a loan of $1.1M (without down payment).
Your monthly interest payment remains the same $7,200
You will make total 300 installments
You will have to pay total amount of $2,160,000, which is 93.29% more than your original loan amount ($1,117,489.42)
For 6% interest, you will receive a loan of $1.2M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $7,200
You will make total 360 installments
You will have to pay total amount of $2,592,000, which is 115.84% more than your original loan amount ($1,200,899.62)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $7,200 | 20 | 1% | $1,565,577.11 |
| $7,200 | 20 | 2% | $1,423,253.05 |
| $7,200 | 20 | 3% | $1,298,238.58 |
| $7,200 | 20 | 4% | $1,188,157.38 |
| $7,200 | 20 | 5% | $1,090,982.25 |
| $7,200 | 20 | 6% | $1,004,981.56 |
| $7,200 | 20 | 7% | $928,674.05 |
| $7,200 | 20 | 8% | $860,790.9 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $7,200 | 25 | 1% | $1,910,460.67 |
| $7,200 | 25 | 2% | $1,698,696.78 |
| $7,200 | 25 | 3% | $1,518,310.46 |
| $7,200 | 25 | 4% | $1,364,057.88 |
| $7,200 | 25 | 5% | $1,231,632.34 |
| $7,200 | 25 | 6% | $1,117,489.42 |
| $7,200 | 25 | 7% | $1,018,705.7 |
| $7,200 | 25 | 8% | $932,864.56 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $7,200 | 30 | 1% | $2,238,530.88 |
| $7,200 | 30 | 2% | $1,947,949.32 |
| $7,200 | 30 | 3% | $1,707,763.55 |
| $7,200 | 30 | 4% | $1,508,120.93 |
| $7,200 | 30 | 5% | $1,341,227.64 |
| $7,200 | 30 | 6% | $1,200,899.62 |
| $7,200 | 30 | 7% | $1,082,214.49 |
| $7,200 | 30 | 8% | $981,241.16 |