Use this calculator to see the home you can afford if you make $55,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $145,247.7
Okay, so let's imagine you make $55,000 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 $10,450 a year, or $870.83 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 ($4,583.33), you can only spend up to $1,466.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $204.7K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $4,583.33. With 6% interest, you will receive a loan of $227.6K (without down payment).
Your monthly interest payment remains the same $1,466.67
You will make total 300 installments
You will have to pay total amount of $440,000, which is 93.29% more than your original loan amount ($227,636.73)
For 6% interest, you will receive a loan of $244.6K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,466.67
You will make total 360 installments
You will have to pay total amount of $528,000, which is 115.84% more than your original loan amount ($244,627.7)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,466.67 | 20 | 1% | $318,913.86 |
| $1,466.67 | 20 | 2% | $289,921.92 |
| $1,466.67 | 20 | 3% | $264,456.01 |
| $1,466.67 | 20 | 4% | $242,032.06 |
| $1,466.67 | 20 | 5% | $222,237.13 |
| $1,466.67 | 20 | 6% | $204,718.47 |
| $1,466.67 | 20 | 7% | $189,174.34 |
| $1,466.67 | 20 | 8% | $175,346.29 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,466.67 | 25 | 1% | $389,167.91 |
| $1,466.67 | 25 | 2% | $346,030.83 |
| $1,466.67 | 25 | 3% | $309,285.46 |
| $1,466.67 | 25 | 4% | $277,863.64 |
| $1,466.67 | 25 | 5% | $250,888.07 |
| $1,466.67 | 25 | 6% | $227,636.73 |
| $1,466.67 | 25 | 7% | $207,514.12 |
| $1,466.67 | 25 | 8% | $190,027.97 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,466.67 | 30 | 1% | $455,997.03 |
| $1,466.67 | 30 | 2% | $396,804.49 |
| $1,466.67 | 30 | 3% | $347,877.76 |
| $1,466.67 | 30 | 4% | $307,209.82 |
| $1,466.67 | 30 | 5% | $273,213.04 |
| $1,466.67 | 30 | 6% | $244,627.7 |
| $1,466.67 | 30 | 7% | $220,451.1 |
| $1,466.67 | 30 | 8% | $199,882.46 |