Use this calculator to see the home you can afford if you make $310,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $818,668.84
Okay, so let's imagine you make $310,000 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 $58,900 a year, or $4,908.33 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 ($25,833.33), you can only spend up to $8,266.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.2M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $25,833.33. With 6% interest, you will receive a loan of $1.3M (without down payment).
Your monthly interest payment remains the same $8,266.67
You will make total 300 installments
You will have to pay total amount of $2,480,000, which is 93.29% more than your original loan amount ($1,283,043.41)
For 6% interest, you will receive a loan of $1.4M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $8,266.67
You will make total 360 installments
You will have to pay total amount of $2,976,000, which is 115.84% more than your original loan amount ($1,378,810.68)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,266.67 | 20 | 1% | $1,797,514.46 |
| $8,266.67 | 20 | 2% | $1,634,105.35 |
| $8,266.67 | 20 | 3% | $1,490,570.23 |
| $8,266.67 | 20 | 4% | $1,364,180.69 |
| $8,266.67 | 20 | 5% | $1,252,609.25 |
| $8,266.67 | 20 | 6% | $1,153,867.71 |
| $8,266.67 | 20 | 7% | $1,066,255.39 |
| $8,266.67 | 20 | 8% | $988,315.48 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,266.67 | 25 | 1% | $2,193,491.88 |
| $8,266.67 | 25 | 2% | $1,950,355.56 |
| $8,266.67 | 25 | 3% | $1,743,245.35 |
| $8,266.67 | 25 | 4% | $1,566,140.53 |
| $8,266.67 | 25 | 5% | $1,414,096.39 |
| $8,266.67 | 25 | 6% | $1,283,043.41 |
| $8,266.67 | 25 | 7% | $1,169,625.07 |
| $8,266.67 | 25 | 8% | $1,071,066.72 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,266.67 | 30 | 1% | $2,570,165.09 |
| $8,266.67 | 30 | 2% | $2,236,534.4 |
| $8,266.67 | 30 | 3% | $1,960,765.55 |
| $8,266.67 | 30 | 4% | $1,731,546.25 |
| $8,266.67 | 30 | 5% | $1,539,928.03 |
| $8,266.67 | 30 | 6% | $1,378,810.68 |
| $8,266.67 | 30 | 7% | $1,242,542.56 |
| $8,266.67 | 30 | 8% | $1,126,610.22 |