Use this calculator to see the home you can afford if you make $81,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $213,910.25
Okay, so let's imagine you make $81,000 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 $15,390 a year, or $1,282.5 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 ($6,750), you can only spend up to $2,160 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $301.5K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $6,750. With 6% interest, you will receive a loan of $335.2K (without down payment).
Your monthly interest payment remains the same $2,160
You will make total 300 installments
You will have to pay total amount of $648,000, which is 93.29% more than your original loan amount ($335,246.83)
For 6% interest, you will receive a loan of $360.3K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,160
You will make total 360 installments
You will have to pay total amount of $777,600, which is 115.84% more than your original loan amount ($360,269.89)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,160 | 20 | 1% | $469,673.13 |
| $2,160 | 20 | 2% | $426,975.92 |
| $2,160 | 20 | 3% | $389,471.58 |
| $2,160 | 20 | 4% | $356,447.21 |
| $2,160 | 20 | 5% | $327,294.68 |
| $2,160 | 20 | 6% | $301,494.47 |
| $2,160 | 20 | 7% | $278,602.21 |
| $2,160 | 20 | 8% | $258,237.27 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,160 | 25 | 1% | $573,138.2 |
| $2,160 | 25 | 2% | $509,609.03 |
| $2,160 | 25 | 3% | $455,493.14 |
| $2,160 | 25 | 4% | $409,217.36 |
| $2,160 | 25 | 5% | $369,489.7 |
| $2,160 | 25 | 6% | $335,246.83 |
| $2,160 | 25 | 7% | $305,611.71 |
| $2,160 | 25 | 8% | $279,859.37 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,160 | 30 | 1% | $671,559.27 |
| $2,160 | 30 | 2% | $584,384.8 |
| $2,160 | 30 | 3% | $512,329.06 |
| $2,160 | 30 | 4% | $452,436.28 |
| $2,160 | 30 | 5% | $402,368.29 |
| $2,160 | 30 | 6% | $360,269.89 |
| $2,160 | 30 | 7% | $324,664.35 |
| $2,160 | 30 | 8% | $294,372.35 |