Use this calculator to see the home you can afford if you make $50,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $132,043.36
Okay, so let's imagine you make $50,000 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 $9,500 a year, or $791.67 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 ($4,166.67), you can only spend up to $1,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $186.1K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $4,166.67. With 6% interest, you will receive a loan of $206.9K (without down payment).
Your monthly interest payment remains the same $1,333.33
You will make total 300 installments
You will have to pay total amount of $400,000, which is 93.29% more than your original loan amount ($206,942.49)
For 6% interest, you will receive a loan of $222.4K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,333.33
You will make total 360 installments
You will have to pay total amount of $480,000, which is 115.84% more than your original loan amount ($222,388.82)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,333.33 | 20 | 1% | $289,921.69 |
| $1,333.33 | 20 | 2% | $263,565.38 |
| $1,333.33 | 20 | 3% | $240,414.55 |
| $1,333.33 | 20 | 4% | $220,029.14 |
| $1,333.33 | 20 | 5% | $202,033.75 |
| $1,333.33 | 20 | 6% | $186,107.7 |
| $1,333.33 | 20 | 7% | $171,976.68 |
| $1,333.33 | 20 | 8% | $159,405.72 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,333.33 | 25 | 1% | $353,789.01 |
| $1,333.33 | 25 | 2% | $314,573.48 |
| $1,333.33 | 25 | 3% | $281,168.6 |
| $1,333.33 | 25 | 4% | $252,603.31 |
| $1,333.33 | 25 | 5% | $228,080.06 |
| $1,333.33 | 25 | 6% | $206,942.49 |
| $1,333.33 | 25 | 7% | $188,649.2 |
| $1,333.33 | 25 | 8% | $172,752.7 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,333.33 | 30 | 1% | $414,542.76 |
| $1,333.33 | 30 | 2% | $360,731.36 |
| $1,333.33 | 30 | 3% | $316,252.51 |
| $1,333.33 | 30 | 4% | $279,281.65 |
| $1,333.33 | 30 | 5% | $248,375.49 |
| $1,333.33 | 30 | 6% | $222,388.82 |
| $1,333.33 | 30 | 7% | $200,410.09 |
| $1,333.33 | 30 | 8% | $181,711.33 |