Use this calculator to see the home you can afford if you make $311,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $821,309.71
Okay, so let's imagine you make $311,000 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 $59,090 a year, or $4,924.17 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 ($25,916.67), you can only spend up to $8,293.33 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 $25,916.67. With 6% interest, you will receive a loan of $1.3M (without down payment).
Your monthly interest payment remains the same $8,293.33
You will make total 300 installments
You will have to pay total amount of $2,488,000, which is 93.29% more than your original loan amount ($1,287,182.26)
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 $8,293.33
You will make total 360 installments
You will have to pay total amount of $2,985,600, which is 115.84% more than your original loan amount ($1,383,258.46)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,293.33 | 20 | 1% | $1,803,312.89 |
| $8,293.33 | 20 | 2% | $1,639,376.66 |
| $8,293.33 | 20 | 3% | $1,495,378.52 |
| $8,293.33 | 20 | 4% | $1,368,581.28 |
| $8,293.33 | 20 | 5% | $1,256,649.93 |
| $8,293.33 | 20 | 6% | $1,157,589.87 |
| $8,293.33 | 20 | 7% | $1,069,694.92 |
| $8,293.33 | 20 | 8% | $991,503.59 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,293.33 | 25 | 1% | $2,200,567.66 |
| $8,293.33 | 25 | 2% | $1,956,647.03 |
| $8,293.33 | 25 | 3% | $1,748,868.72 |
| $8,293.33 | 25 | 4% | $1,571,192.59 |
| $8,293.33 | 25 | 5% | $1,418,657.99 |
| $8,293.33 | 25 | 6% | $1,287,182.26 |
| $8,293.33 | 25 | 7% | $1,173,398.05 |
| $8,293.33 | 25 | 8% | $1,074,521.77 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,293.33 | 30 | 1% | $2,578,455.94 |
| $8,293.33 | 30 | 2% | $2,243,749.03 |
| $8,293.33 | 30 | 3% | $1,967,090.6 |
| $8,293.33 | 30 | 4% | $1,737,131.89 |
| $8,293.33 | 30 | 5% | $1,544,895.54 |
| $8,293.33 | 30 | 6% | $1,383,258.46 |
| $8,293.33 | 30 | 7% | $1,246,550.76 |
| $8,293.33 | 30 | 8% | $1,130,244.44 |