Use this calculator to see the home you can afford if you make $300,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $792,260.17
Okay, so let's imagine you make $300,000 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 $57,000 a year, or $4,750 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 ($25,000), you can only spend up to $8,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.1M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $25,000. With 6% interest, you will receive a loan of $1.2M (without down payment).
Your monthly interest payment remains the same $8,000
You will make total 300 installments
You will have to pay total amount of $2,400,000, which is 93.29% more than your original loan amount ($1,241,654.91)
For 6% interest, you will receive a loan of $1.3M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $8,000
You will make total 360 installments
You will have to pay total amount of $2,880,000, which is 115.84% more than your original loan amount ($1,334,332.92)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,000 | 20 | 1% | $1,739,530.12 |
| $8,000 | 20 | 2% | $1,581,392.28 |
| $8,000 | 20 | 3% | $1,442,487.32 |
| $8,000 | 20 | 4% | $1,320,174.87 |
| $8,000 | 20 | 5% | $1,212,202.5 |
| $8,000 | 20 | 6% | $1,116,646.17 |
| $8,000 | 20 | 7% | $1,031,860.05 |
| $8,000 | 20 | 8% | $956,434.33 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,000 | 25 | 1% | $2,122,734.07 |
| $8,000 | 25 | 2% | $1,887,440.87 |
| $8,000 | 25 | 3% | $1,687,011.63 |
| $8,000 | 25 | 4% | $1,515,619.86 |
| $8,000 | 25 | 5% | $1,368,480.38 |
| $8,000 | 25 | 6% | $1,241,654.91 |
| $8,000 | 25 | 7% | $1,131,895.23 |
| $8,000 | 25 | 8% | $1,036,516.18 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,000 | 30 | 1% | $2,487,256.54 |
| $8,000 | 30 | 2% | $2,164,388.13 |
| $8,000 | 30 | 3% | $1,897,515.05 |
| $8,000 | 30 | 4% | $1,675,689.92 |
| $8,000 | 30 | 5% | $1,490,252.94 |
| $8,000 | 30 | 6% | $1,334,332.92 |
| $8,000 | 30 | 7% | $1,202,460.54 |
| $8,000 | 30 | 8% | $1,090,267.95 |