Use this calculator to see the home you can afford if you make $380,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,003,529.55
Okay, so let's imagine you make $380,000 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 $72,200 a year, or $6,016.67 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 ($31,666.67), you can only spend up to $10,133.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.4M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $31,666.67. With 6% interest, you will receive a loan of $1.6M (without down payment).
Your monthly interest payment remains the same $10,133.33
You will make total 300 installments
You will have to pay total amount of $3,040,000, which is 93.29% more than your original loan amount ($1,572,762.89)
For 6% interest, you will receive a loan of $1.7M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $10,133.33
You will make total 360 installments
You will have to pay total amount of $3,648,000, which is 115.84% more than your original loan amount ($1,690,155.03)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $10,133.33 | 20 | 1% | $2,203,404.82 |
| $10,133.33 | 20 | 2% | $2,003,096.89 |
| $10,133.33 | 20 | 3% | $1,827,150.6 |
| $10,133.33 | 20 | 4% | $1,672,221.5 |
| $10,133.33 | 20 | 5% | $1,535,456.51 |
| $10,133.33 | 20 | 6% | $1,414,418.49 |
| $10,133.33 | 20 | 7% | $1,307,022.73 |
| $10,133.33 | 20 | 8% | $1,211,483.49 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $10,133.33 | 25 | 1% | $2,688,796.49 |
| $10,133.33 | 25 | 2% | $2,390,758.43 |
| $10,133.33 | 25 | 3% | $2,136,881.39 |
| $10,133.33 | 25 | 4% | $1,919,785.16 |
| $10,133.33 | 25 | 5% | $1,733,408.48 |
| $10,133.33 | 25 | 6% | $1,572,762.89 |
| $10,133.33 | 25 | 7% | $1,433,733.95 |
| $10,133.33 | 25 | 8% | $1,312,920.5 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $10,133.33 | 30 | 1% | $3,150,524.95 |
| $10,133.33 | 30 | 2% | $2,741,558.3 |
| $10,133.33 | 30 | 3% | $2,403,519.07 |
| $10,133.33 | 30 | 4% | $2,122,540.57 |
| $10,133.33 | 30 | 5% | $1,887,653.72 |
| $10,133.33 | 30 | 6% | $1,690,155.03 |
| $10,133.33 | 30 | 7% | $1,523,116.69 |
| $10,133.33 | 30 | 8% | $1,381,006.07 |