Use this calculator to see the home you can afford if you make $330,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $871,486.19
Okay, so let's imagine you make $330,000 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 $62,700 a year, or $5,225 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 ($27,500), you can only spend up to $8,800 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 $27,500. With 6% interest, you will receive a loan of $1.4M (without down payment).
Your monthly interest payment remains the same $8,800
You will make total 300 installments
You will have to pay total amount of $2,640,000, which is 93.29% more than your original loan amount ($1,365,820.4)
For 6% interest, you will receive a loan of $1.5M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $8,800
You will make total 360 installments
You will have to pay total amount of $3,168,000, which is 115.84% more than your original loan amount ($1,467,766.21)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,800 | 20 | 1% | $1,913,483.13 |
| $8,800 | 20 | 2% | $1,739,531.51 |
| $8,800 | 20 | 3% | $1,586,736.05 |
| $8,800 | 20 | 4% | $1,452,192.35 |
| $8,800 | 20 | 5% | $1,333,422.76 |
| $8,800 | 20 | 6% | $1,228,310.79 |
| $8,800 | 20 | 7% | $1,135,046.06 |
| $8,800 | 20 | 8% | $1,052,077.77 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,800 | 25 | 1% | $2,335,007.48 |
| $8,800 | 25 | 2% | $2,076,184.95 |
| $8,800 | 25 | 3% | $1,855,712.79 |
| $8,800 | 25 | 4% | $1,667,181.85 |
| $8,800 | 25 | 5% | $1,505,328.41 |
| $8,800 | 25 | 6% | $1,365,820.4 |
| $8,800 | 25 | 7% | $1,245,084.75 |
| $8,800 | 25 | 8% | $1,140,167.8 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $8,800 | 30 | 1% | $2,735,982.19 |
| $8,800 | 30 | 2% | $2,380,826.95 |
| $8,800 | 30 | 3% | $2,087,266.56 |
| $8,800 | 30 | 4% | $1,843,258.92 |
| $8,800 | 30 | 5% | $1,639,278.23 |
| $8,800 | 30 | 6% | $1,467,766.21 |
| $8,800 | 30 | 7% | $1,322,706.6 |
| $8,800 | 30 | 8% | $1,199,294.75 |