Use this calculator to see the home you can afford if you make $320,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $845,077.51
Okay, so let's imagine you make $320,000 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 $60,800 a year, or $5,066.67 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 ($26,666.67), you can only spend up to $8,533.33 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 $26,666.67. With 6% interest, you will receive a loan of $1.3M (without down payment).
Your monthly interest payment remains the same $8,533.33
You will make total 300 installments
You will have to pay total amount of $2,560,000, which is 93.29% more than your original loan amount ($1,324,431.91)
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 $8,533.33
You will make total 360 installments
You will have to pay total amount of $3,072,000, which is 115.84% more than your original loan amount ($1,423,288.44)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,533.33 | 20 | 1% | $1,855,498.8 |
| $8,533.33 | 20 | 2% | $1,686,818.43 |
| $8,533.33 | 20 | 3% | $1,538,653.14 |
| $8,533.33 | 20 | 4% | $1,408,186.52 |
| $8,533.33 | 20 | 5% | $1,293,016 |
| $8,533.33 | 20 | 6% | $1,191,089.25 |
| $8,533.33 | 20 | 7% | $1,100,650.72 |
| $8,533.33 | 20 | 8% | $1,020,196.62 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,533.33 | 25 | 1% | $2,264,249.68 |
| $8,533.33 | 25 | 2% | $2,013,270.26 |
| $8,533.33 | 25 | 3% | $1,799,479.07 |
| $8,533.33 | 25 | 4% | $1,616,661.19 |
| $8,533.33 | 25 | 5% | $1,459,712.4 |
| $8,533.33 | 25 | 6% | $1,324,431.91 |
| $8,533.33 | 25 | 7% | $1,207,354.91 |
| $8,533.33 | 25 | 8% | $1,105,617.26 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,533.33 | 30 | 1% | $2,653,073.64 |
| $8,533.33 | 30 | 2% | $2,308,680.67 |
| $8,533.33 | 30 | 3% | $2,024,016.06 |
| $8,533.33 | 30 | 4% | $1,787,402.59 |
| $8,533.33 | 30 | 5% | $1,589,603.13 |
| $8,533.33 | 30 | 6% | $1,423,288.44 |
| $8,533.33 | 30 | 7% | $1,282,624.58 |
| $8,533.33 | 30 | 8% | $1,162,952.48 |