Use this calculator to see the home you can afford if you make $51,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $134,684.23
Okay, so let's imagine you make $51,000 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 $9,690 a year, or $807.5 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 ($4,250), you can only spend up to $1,360 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $189.8K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $4,250. With 6% interest, you will receive a loan of $211.1K (without down payment).
Your monthly interest payment remains the same $1,360
You will make total 300 installments
You will have to pay total amount of $408,000, which is 93.29% more than your original loan amount ($211,081.34)
For 6% interest, you will receive a loan of $226.8K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,360
You will make total 360 installments
You will have to pay total amount of $489,600, which is 115.84% more than your original loan amount ($226,836.6)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,360 | 20 | 1% | $295,720.12 |
| $1,360 | 20 | 2% | $268,836.69 |
| $1,360 | 20 | 3% | $245,222.84 |
| $1,360 | 20 | 4% | $224,429.73 |
| $1,360 | 20 | 5% | $206,074.43 |
| $1,360 | 20 | 6% | $189,829.85 |
| $1,360 | 20 | 7% | $175,416.21 |
| $1,360 | 20 | 8% | $162,593.84 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,360 | 25 | 1% | $360,864.79 |
| $1,360 | 25 | 2% | $320,864.95 |
| $1,360 | 25 | 3% | $286,791.98 |
| $1,360 | 25 | 4% | $257,655.38 |
| $1,360 | 25 | 5% | $232,641.66 |
| $1,360 | 25 | 6% | $211,081.34 |
| $1,360 | 25 | 7% | $192,422.19 |
| $1,360 | 25 | 8% | $176,207.75 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,360 | 30 | 1% | $422,833.61 |
| $1,360 | 30 | 2% | $367,945.98 |
| $1,360 | 30 | 3% | $322,577.56 |
| $1,360 | 30 | 4% | $284,867.29 |
| $1,360 | 30 | 5% | $253,343 |
| $1,360 | 30 | 6% | $226,836.6 |
| $1,360 | 30 | 7% | $204,418.29 |
| $1,360 | 30 | 8% | $185,345.55 |