Use this calculator to see the home you can afford if you make $70,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $184,860.71
Okay, so let's imagine you make $70,000 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 $13,300 a year, or $1,108.33 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 ($5,833.33), you can only spend up to $1,866.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $260.6K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $5,833.33. With 6% interest, you will receive a loan of $289.7K (without down payment).
Your monthly interest payment remains the same $1,866.67
You will make total 300 installments
You will have to pay total amount of $560,000, which is 93.29% more than your original loan amount ($289,719.48)
For 6% interest, you will receive a loan of $311.3K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $1,866.67
You will make total 360 installments
You will have to pay total amount of $672,000, which is 115.84% more than your original loan amount ($311,344.35)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,866.67 | 20 | 1% | $405,890.36 |
| $1,866.67 | 20 | 2% | $368,991.53 |
| $1,866.67 | 20 | 3% | $336,580.37 |
| $1,866.67 | 20 | 4% | $308,040.8 |
| $1,866.67 | 20 | 5% | $282,847.25 |
| $1,866.67 | 20 | 6% | $260,550.77 |
| $1,866.67 | 20 | 7% | $240,767.35 |
| $1,866.67 | 20 | 8% | $223,168.01 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,866.67 | 25 | 1% | $495,304.62 |
| $1,866.67 | 25 | 2% | $440,402.87 |
| $1,866.67 | 25 | 3% | $393,636.05 |
| $1,866.67 | 25 | 4% | $353,644.63 |
| $1,866.67 | 25 | 5% | $319,312.09 |
| $1,866.67 | 25 | 6% | $289,719.48 |
| $1,866.67 | 25 | 7% | $264,108.89 |
| $1,866.67 | 25 | 8% | $241,853.78 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $1,866.67 | 30 | 1% | $580,359.86 |
| $1,866.67 | 30 | 2% | $505,023.9 |
| $1,866.67 | 30 | 3% | $442,753.51 |
| $1,866.67 | 30 | 4% | $390,994.32 |
| $1,866.67 | 30 | 5% | $347,725.69 |
| $1,866.67 | 30 | 6% | $311,344.35 |
| $1,866.67 | 30 | 7% | $280,574.13 |
| $1,866.67 | 30 | 8% | $254,395.86 |