Use this calculator to see the home you can afford if you make $80,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $211,269.38
Okay, so let's imagine you make $80,000 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 $15,200 a year, or $1,266.67 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 ($6,666.67), you can only spend up to $2,133.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $297.8K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $6,666.67. With 6% interest, you will receive a loan of $331.1K (without down payment).
Your monthly interest payment remains the same $2,133.33
You will make total 300 installments
You will have to pay total amount of $640,000, which is 93.29% more than your original loan amount ($331,107.98)
For 6% interest, you will receive a loan of $355.8K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,133.33
You will make total 360 installments
You will have to pay total amount of $768,000, which is 115.84% more than your original loan amount ($355,822.11)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,133.33 | 20 | 1% | $463,874.7 |
| $2,133.33 | 20 | 2% | $421,704.61 |
| $2,133.33 | 20 | 3% | $384,663.28 |
| $2,133.33 | 20 | 4% | $352,046.63 |
| $2,133.33 | 20 | 5% | $323,254 |
| $2,133.33 | 20 | 6% | $297,772.31 |
| $2,133.33 | 20 | 7% | $275,162.68 |
| $2,133.33 | 20 | 8% | $255,049.16 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,133.33 | 25 | 1% | $566,062.42 |
| $2,133.33 | 25 | 2% | $503,317.56 |
| $2,133.33 | 25 | 3% | $449,869.77 |
| $2,133.33 | 25 | 4% | $404,165.3 |
| $2,133.33 | 25 | 5% | $364,928.1 |
| $2,133.33 | 25 | 6% | $331,107.98 |
| $2,133.33 | 25 | 7% | $301,838.73 |
| $2,133.33 | 25 | 8% | $276,404.31 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,133.33 | 30 | 1% | $663,268.41 |
| $2,133.33 | 30 | 2% | $577,170.17 |
| $2,133.33 | 30 | 3% | $506,004.01 |
| $2,133.33 | 30 | 4% | $446,850.65 |
| $2,133.33 | 30 | 5% | $397,400.78 |
| $2,133.33 | 30 | 6% | $355,822.11 |
| $2,133.33 | 30 | 7% | $320,656.14 |
| $2,133.33 | 30 | 8% | $290,738.12 |