Use this calculator to see the home you can afford if you make $350,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $924,303.53
Okay, so let's imagine you make $350,000 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 $66,500 a year, or $5,541.67 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 ($29,166.67), you can only spend up to $9,333.33 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 $29,166.67. With 6% interest, you will receive a loan of $1.4M (without down payment).
Your monthly interest payment remains the same $9,333.33
You will make total 300 installments
You will have to pay total amount of $2,800,000, which is 93.29% more than your original loan amount ($1,448,597.4)
For 6% interest, you will receive a loan of $1.6M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $9,333.33
You will make total 360 installments
You will have to pay total amount of $3,360,000, which is 115.84% more than your original loan amount ($1,556,721.73)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,333.33 | 20 | 1% | $2,029,451.81 |
| $9,333.33 | 20 | 2% | $1,844,957.66 |
| $9,333.33 | 20 | 3% | $1,682,901.87 |
| $9,333.33 | 20 | 4% | $1,540,204.01 |
| $9,333.33 | 20 | 5% | $1,414,236.26 |
| $9,333.33 | 20 | 6% | $1,302,753.87 |
| $9,333.33 | 20 | 7% | $1,203,836.73 |
| $9,333.33 | 20 | 8% | $1,115,840.06 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,333.33 | 25 | 1% | $2,476,523.09 |
| $9,333.33 | 25 | 2% | $2,202,014.34 |
| $9,333.33 | 25 | 3% | $1,968,180.23 |
| $9,333.33 | 25 | 4% | $1,768,223.17 |
| $9,333.33 | 25 | 5% | $1,596,560.44 |
| $9,333.33 | 25 | 6% | $1,448,597.4 |
| $9,333.33 | 25 | 7% | $1,320,544.43 |
| $9,333.33 | 25 | 8% | $1,209,268.88 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $9,333.33 | 30 | 1% | $2,901,799.29 |
| $9,333.33 | 30 | 2% | $2,525,119.49 |
| $9,333.33 | 30 | 3% | $2,213,767.56 |
| $9,333.33 | 30 | 4% | $1,954,971.58 |
| $9,333.33 | 30 | 5% | $1,738,628.43 |
| $9,333.33 | 30 | 6% | $1,556,721.73 |
| $9,333.33 | 30 | 7% | $1,402,870.63 |
| $9,333.33 | 30 | 8% | $1,271,979.28 |