Use this calculator to see the home you can afford if you make $341,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $900,535.72
Okay, so let's imagine you make $341,000 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 $64,790 a year, or $5,399.17 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 ($28,416.67), you can only spend up to $9,093.33 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 $28,416.67. With 6% interest, you will receive a loan of $1.4M (without down payment).
Your monthly interest payment remains the same $9,093.33
You will make total 300 installments
You will have to pay total amount of $2,728,000, which is 93.29% more than your original loan amount ($1,411,347.75)
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 $9,093.33
You will make total 360 installments
You will have to pay total amount of $3,273,600, which is 115.84% more than your original loan amount ($1,516,691.75)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,093.33 | 20 | 1% | $1,977,265.91 |
| $9,093.33 | 20 | 2% | $1,797,515.89 |
| $9,093.33 | 20 | 3% | $1,639,627.25 |
| $9,093.33 | 20 | 4% | $1,500,598.76 |
| $9,093.33 | 20 | 5% | $1,377,870.18 |
| $9,093.33 | 20 | 6% | $1,269,254.48 |
| $9,093.33 | 20 | 7% | $1,172,880.93 |
| $9,093.33 | 20 | 8% | $1,087,147.03 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,093.33 | 25 | 1% | $2,412,841.06 |
| $9,093.33 | 25 | 2% | $2,145,391.12 |
| $9,093.33 | 25 | 3% | $1,917,569.88 |
| $9,093.33 | 25 | 4% | $1,722,754.58 |
| $9,093.33 | 25 | 5% | $1,555,506.03 |
| $9,093.33 | 25 | 6% | $1,411,347.75 |
| $9,093.33 | 25 | 7% | $1,286,587.57 |
| $9,093.33 | 25 | 8% | $1,178,173.39 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,093.33 | 30 | 1% | $2,827,181.6 |
| $9,093.33 | 30 | 2% | $2,460,187.84 |
| $9,093.33 | 30 | 3% | $2,156,842.11 |
| $9,093.33 | 30 | 4% | $1,904,700.88 |
| $9,093.33 | 30 | 5% | $1,693,920.84 |
| $9,093.33 | 30 | 6% | $1,516,691.75 |
| $9,093.33 | 30 | 7% | $1,366,796.82 |
| $9,093.33 | 30 | 8% | $1,239,271.24 |