Use this calculator to see the home you can afford if you make $431,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,138,213.78
Okay, so let's imagine you make $431,000 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 $81,890 a year, or $6,824.17 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 ($35,916.67), you can only spend up to $11,493.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.6M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $35,916.67. With 6% interest, you will receive a loan of $1.8M (without down payment).
Your monthly interest payment remains the same $11,493.33
You will make total 300 installments
You will have to pay total amount of $3,448,000, which is 93.29% more than your original loan amount ($1,783,844.22)
For 6% interest, you will receive a loan of $1.9M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $11,493.33
You will make total 360 installments
You will have to pay total amount of $4,137,600, which is 115.84% more than your original loan amount ($1,916,991.62)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $11,493.33 | 20 | 1% | $2,499,124.94 |
| $11,493.33 | 20 | 2% | $2,271,933.57 |
| $11,493.33 | 20 | 3% | $2,072,373.44 |
| $11,493.33 | 20 | 4% | $1,896,651.22 |
| $11,493.33 | 20 | 5% | $1,741,530.93 |
| $11,493.33 | 20 | 6% | $1,604,248.34 |
| $11,493.33 | 20 | 7% | $1,482,438.94 |
| $11,493.33 | 20 | 8% | $1,374,077.33 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $11,493.33 | 25 | 1% | $3,049,661.29 |
| $11,493.33 | 25 | 2% | $2,711,623.38 |
| $11,493.33 | 25 | 3% | $2,423,673.37 |
| $11,493.33 | 25 | 4% | $2,177,440.54 |
| $11,493.33 | 25 | 5% | $1,966,050.14 |
| $11,493.33 | 25 | 6% | $1,783,844.22 |
| $11,493.33 | 25 | 7% | $1,626,156.14 |
| $11,493.33 | 25 | 8% | $1,489,128.25 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $11,493.33 | 30 | 1% | $3,573,358.56 |
| $11,493.33 | 30 | 2% | $3,109,504.28 |
| $11,493.33 | 30 | 3% | $2,726,096.62 |
| $11,493.33 | 30 | 4% | $2,407,407.86 |
| $11,493.33 | 30 | 5% | $2,140,996.72 |
| $11,493.33 | 30 | 6% | $1,916,991.62 |
| $11,493.33 | 30 | 7% | $1,727,534.98 |
| $11,493.33 | 30 | 8% | $1,566,351.63 |