Use this calculator to see the home you can afford if you make $60,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $158,452.03
Okay, so let's imagine you make $60,000 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 $11,400 a year, or $950 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 ($5,000), you can only spend up to $1,600 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $223.3K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $5,000. With 6% interest, you will receive a loan of $248.3K (without down payment).
Your monthly interest payment remains the same $1,600
You will make total 300 installments
You will have to pay total amount of $480,000, which is 93.29% more than your original loan amount ($248,330.98)
For 6% interest, you will receive a loan of $266.9K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,600
You will make total 360 installments
You will have to pay total amount of $576,000, which is 115.84% more than your original loan amount ($266,866.58)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,600 | 20 | 1% | $347,906.02 |
| $1,600 | 20 | 2% | $316,278.46 |
| $1,600 | 20 | 3% | $288,497.46 |
| $1,600 | 20 | 4% | $264,034.97 |
| $1,600 | 20 | 5% | $242,440.5 |
| $1,600 | 20 | 6% | $223,329.23 |
| $1,600 | 20 | 7% | $206,372.01 |
| $1,600 | 20 | 8% | $191,286.87 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,600 | 25 | 1% | $424,546.81 |
| $1,600 | 25 | 2% | $377,488.17 |
| $1,600 | 25 | 3% | $337,402.33 |
| $1,600 | 25 | 4% | $303,123.97 |
| $1,600 | 25 | 5% | $273,696.08 |
| $1,600 | 25 | 6% | $248,330.98 |
| $1,600 | 25 | 7% | $226,379.05 |
| $1,600 | 25 | 8% | $207,303.24 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,600 | 30 | 1% | $497,451.31 |
| $1,600 | 30 | 2% | $432,877.63 |
| $1,600 | 30 | 3% | $379,503.01 |
| $1,600 | 30 | 4% | $335,137.98 |
| $1,600 | 30 | 5% | $298,050.59 |
| $1,600 | 30 | 6% | $266,866.58 |
| $1,600 | 30 | 7% | $240,492.11 |
| $1,600 | 30 | 8% | $218,053.59 |