Use this calculator to see the home you can afford if you make $35,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $92,430.35
Okay, so let's imagine you make $35,000 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 $6,650 a year, or $554.17 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 ($2,916.67), you can only spend up to $933.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $130.3K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $2,916.67. With 6% interest, you will receive a loan of $144.9K (without down payment).
Your monthly interest payment remains the same $933.33
You will make total 300 installments
You will have to pay total amount of $280,000, which is 93.29% more than your original loan amount ($144,859.74)
For 6% interest, you will receive a loan of $155.7K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $933.33
You will make total 360 installments
You will have to pay total amount of $336,000, which is 115.84% more than your original loan amount ($155,672.17)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $933.33 | 20 | 1% | $202,945.18 |
| $933.33 | 20 | 2% | $184,495.77 |
| $933.33 | 20 | 3% | $168,290.19 |
| $933.33 | 20 | 4% | $154,020.4 |
| $933.33 | 20 | 5% | $141,423.63 |
| $933.33 | 20 | 6% | $130,275.39 |
| $933.33 | 20 | 7% | $120,383.67 |
| $933.33 | 20 | 8% | $111,584.01 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $933.33 | 25 | 1% | $247,652.31 |
| $933.33 | 25 | 2% | $220,201.43 |
| $933.33 | 25 | 3% | $196,818.02 |
| $933.33 | 25 | 4% | $176,822.32 |
| $933.33 | 25 | 5% | $159,656.04 |
| $933.33 | 25 | 6% | $144,859.74 |
| $933.33 | 25 | 7% | $132,054.44 |
| $933.33 | 25 | 8% | $120,926.89 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $933.33 | 30 | 1% | $290,179.93 |
| $933.33 | 30 | 2% | $252,511.95 |
| $933.33 | 30 | 3% | $221,376.76 |
| $933.33 | 30 | 4% | $195,497.16 |
| $933.33 | 30 | 5% | $173,862.84 |
| $933.33 | 30 | 6% | $155,672.17 |
| $933.33 | 30 | 7% | $140,287.06 |
| $933.33 | 30 | 8% | $127,197.93 |