Use this calculator to see the home you can afford if you make $30,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $79,226.02
Okay, so let's imagine you make $30,000 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 $5,700 a year, or $475 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 ($2,500), you can only spend up to $800 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $111.7K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $2,500. With 6% interest, you will receive a loan of $124.2K (without down payment).
Your monthly interest payment remains the same $800
You will make total 300 installments
You will have to pay total amount of $240,000, which is 93.29% more than your original loan amount ($124,165.49)
For 6% interest, you will receive a loan of $133.4K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $800
You will make total 360 installments
You will have to pay total amount of $288,000, which is 115.84% more than your original loan amount ($133,433.29)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $800 | 20 | 1% | $173,953.01 |
| $800 | 20 | 2% | $158,139.23 |
| $800 | 20 | 3% | $144,248.73 |
| $800 | 20 | 4% | $132,017.49 |
| $800 | 20 | 5% | $121,220.25 |
| $800 | 20 | 6% | $111,664.62 |
| $800 | 20 | 7% | $103,186.01 |
| $800 | 20 | 8% | $95,643.43 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $800 | 25 | 1% | $212,273.41 |
| $800 | 25 | 2% | $188,744.09 |
| $800 | 25 | 3% | $168,701.16 |
| $800 | 25 | 4% | $151,561.99 |
| $800 | 25 | 5% | $136,848.04 |
| $800 | 25 | 6% | $124,165.49 |
| $800 | 25 | 7% | $113,189.52 |
| $800 | 25 | 8% | $103,651.62 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $800 | 30 | 1% | $248,725.65 |
| $800 | 30 | 2% | $216,438.81 |
| $800 | 30 | 3% | $189,751.51 |
| $800 | 30 | 4% | $167,568.99 |
| $800 | 30 | 5% | $149,025.29 |
| $800 | 30 | 6% | $133,433.29 |
| $800 | 30 | 7% | $120,246.05 |
| $800 | 30 | 8% | $109,026.8 |