Use this calculator to see the home you can afford if you make $41,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $108,275.56
Okay, so let's imagine you make $41,000 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 $7,790 a year, or $649.17 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 ($3,416.67), you can only spend up to $1,093.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $152.6K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $3,416.67. With 6% interest, you will receive a loan of $169.7K (without down payment).
Your monthly interest payment remains the same $1,093.33
You will make total 300 installments
You will have to pay total amount of $328,000, which is 93.29% more than your original loan amount ($169,692.84)
For 6% interest, you will receive a loan of $182.4K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,093.33
You will make total 360 installments
You will have to pay total amount of $393,600, which is 115.84% more than your original loan amount ($182,358.83)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,093.33 | 20 | 1% | $237,735.78 |
| $1,093.33 | 20 | 2% | $216,123.61 |
| $1,093.33 | 20 | 3% | $197,139.93 |
| $1,093.33 | 20 | 4% | $180,423.9 |
| $1,093.33 | 20 | 5% | $165,667.68 |
| $1,093.33 | 20 | 6% | $152,608.31 |
| $1,093.33 | 20 | 7% | $141,020.87 |
| $1,093.33 | 20 | 8% | $130,712.69 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,093.33 | 25 | 1% | $290,106.99 |
| $1,093.33 | 25 | 2% | $257,950.25 |
| $1,093.33 | 25 | 3% | $230,558.26 |
| $1,093.33 | 25 | 4% | $207,134.71 |
| $1,093.33 | 25 | 5% | $187,025.65 |
| $1,093.33 | 25 | 6% | $169,692.84 |
| $1,093.33 | 25 | 7% | $154,692.35 |
| $1,093.33 | 25 | 8% | $141,657.21 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,093.33 | 30 | 1% | $339,925.06 |
| $1,093.33 | 30 | 2% | $295,799.71 |
| $1,093.33 | 30 | 3% | $259,327.06 |
| $1,093.33 | 30 | 4% | $229,010.96 |
| $1,093.33 | 30 | 5% | $203,667.9 |
| $1,093.33 | 30 | 6% | $182,358.83 |
| $1,093.33 | 30 | 7% | $164,336.27 |
| $1,093.33 | 30 | 8% | $149,003.29 |