Use this calculator to see the home you can afford if you make $340,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $897,894.86
Okay, so let's imagine you make $340,000 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 $64,600 a year, or $5,383.33 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 ($28,333.33), you can only spend up to $9,066.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.3M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $28,333.33. With 6% interest, you will receive a loan of $1.4M (without down payment).
Your monthly interest payment remains the same $9,066.67
You will make total 300 installments
You will have to pay total amount of $2,720,000, which is 93.29% more than your original loan amount ($1,407,208.9)
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 $9,066.67
You will make total 360 installments
You will have to pay total amount of $3,264,000, which is 115.84% more than your original loan amount ($1,512,243.97)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,066.67 | 20 | 1% | $1,971,467.47 |
| $9,066.67 | 20 | 2% | $1,792,244.58 |
| $9,066.67 | 20 | 3% | $1,634,818.96 |
| $9,066.67 | 20 | 4% | $1,496,198.18 |
| $9,066.67 | 20 | 5% | $1,373,829.51 |
| $9,066.67 | 20 | 6% | $1,265,532.33 |
| $9,066.67 | 20 | 7% | $1,169,441.39 |
| $9,066.67 | 20 | 8% | $1,083,958.91 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,066.67 | 25 | 1% | $2,405,765.28 |
| $9,066.67 | 25 | 2% | $2,139,099.65 |
| $9,066.67 | 25 | 3% | $1,911,946.51 |
| $9,066.67 | 25 | 4% | $1,717,702.51 |
| $9,066.67 | 25 | 5% | $1,550,944.43 |
| $9,066.67 | 25 | 6% | $1,407,208.9 |
| $9,066.67 | 25 | 7% | $1,282,814.59 |
| $9,066.67 | 25 | 8% | $1,174,718.34 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,066.67 | 30 | 1% | $2,818,890.74 |
| $9,066.67 | 30 | 2% | $2,452,973.22 |
| $9,066.67 | 30 | 3% | $2,150,517.06 |
| $9,066.67 | 30 | 4% | $1,899,115.25 |
| $9,066.67 | 30 | 5% | $1,688,953.33 |
| $9,066.67 | 30 | 6% | $1,512,243.97 |
| $9,066.67 | 30 | 7% | $1,362,788.62 |
| $9,066.67 | 30 | 8% | $1,235,637.01 |