Use this calculator to see the home you can afford if you make $45,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $118,839.03
Okay, so let's imagine you make $45,000 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 $8,550 a year, or $712.5 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 ($3,750), you can only spend up to $1,200 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $167.5K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $3,750. With 6% interest, you will receive a loan of $186.2K (without down payment).
Your monthly interest payment remains the same $1,200
You will make total 300 installments
You will have to pay total amount of $360,000, which is 93.29% more than your original loan amount ($186,248.24)
For 6% interest, you will receive a loan of $200.1K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,200
You will make total 360 installments
You will have to pay total amount of $432,000, which is 115.84% more than your original loan amount ($200,149.94)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,200 | 20 | 1% | $260,929.52 |
| $1,200 | 20 | 2% | $237,208.84 |
| $1,200 | 20 | 3% | $216,373.1 |
| $1,200 | 20 | 4% | $198,026.23 |
| $1,200 | 20 | 5% | $181,830.38 |
| $1,200 | 20 | 6% | $167,496.93 |
| $1,200 | 20 | 7% | $154,779.01 |
| $1,200 | 20 | 8% | $143,465.15 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,200 | 25 | 1% | $318,410.11 |
| $1,200 | 25 | 2% | $283,116.13 |
| $1,200 | 25 | 3% | $253,051.74 |
| $1,200 | 25 | 4% | $227,342.98 |
| $1,200 | 25 | 5% | $205,272.06 |
| $1,200 | 25 | 6% | $186,248.24 |
| $1,200 | 25 | 7% | $169,784.28 |
| $1,200 | 25 | 8% | $155,477.43 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,200 | 30 | 1% | $373,088.48 |
| $1,200 | 30 | 2% | $324,658.22 |
| $1,200 | 30 | 3% | $284,627.26 |
| $1,200 | 30 | 4% | $251,353.49 |
| $1,200 | 30 | 5% | $223,537.94 |
| $1,200 | 30 | 6% | $200,149.94 |
| $1,200 | 30 | 7% | $180,369.08 |
| $1,200 | 30 | 8% | $163,540.19 |