Use this calculator to see the home you can afford if you make $75,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $198,065.04
Okay, so let's imagine you make $75,000 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 $14,250 a year, or $1,187.5 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 ($6,250), you can only spend up to $2,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $279.2K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $6,250. With 6% interest, you will receive a loan of $310.4K (without down payment).
Your monthly interest payment remains the same $2,000
You will make total 300 installments
You will have to pay total amount of $600,000, which is 93.29% more than your original loan amount ($310,413.73)
For 6% interest, you will receive a loan of $333.6K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,000
You will make total 360 installments
You will have to pay total amount of $720,000, which is 115.84% more than your original loan amount ($333,583.23)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,000 | 20 | 1% | $434,882.53 |
| $2,000 | 20 | 2% | $395,348.07 |
| $2,000 | 20 | 3% | $360,621.83 |
| $2,000 | 20 | 4% | $330,043.72 |
| $2,000 | 20 | 5% | $303,050.63 |
| $2,000 | 20 | 6% | $279,161.54 |
| $2,000 | 20 | 7% | $257,965.01 |
| $2,000 | 20 | 8% | $239,108.58 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,000 | 25 | 1% | $530,683.52 |
| $2,000 | 25 | 2% | $471,860.22 |
| $2,000 | 25 | 3% | $421,752.91 |
| $2,000 | 25 | 4% | $378,904.97 |
| $2,000 | 25 | 5% | $342,120.09 |
| $2,000 | 25 | 6% | $310,413.73 |
| $2,000 | 25 | 7% | $282,973.81 |
| $2,000 | 25 | 8% | $259,129.05 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,000 | 30 | 1% | $621,814.13 |
| $2,000 | 30 | 2% | $541,097.03 |
| $2,000 | 30 | 3% | $474,378.76 |
| $2,000 | 30 | 4% | $418,922.48 |
| $2,000 | 30 | 5% | $372,563.23 |
| $2,000 | 30 | 6% | $333,583.23 |
| $2,000 | 30 | 7% | $300,615.14 |
| $2,000 | 30 | 8% | $272,566.99 |