Use this calculator to see the home you can afford if you make $85,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $224,473.71
Okay, so let's imagine you make $85,000 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 $16,150 a year, or $1,345.83 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 ($7,083.33), you can only spend up to $2,266.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $316.4K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $7,083.33. With 6% interest, you will receive a loan of $351.8K (without down payment).
Your monthly interest payment remains the same $2,266.67
You will make total 300 installments
You will have to pay total amount of $680,000, which is 93.29% more than your original loan amount ($351,802.23)
For 6% interest, you will receive a loan of $378.1K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,266.67
You will make total 360 installments
You will have to pay total amount of $816,000, which is 115.84% more than your original loan amount ($378,060.99)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,266.67 | 20 | 1% | $492,866.87 |
| $2,266.67 | 20 | 2% | $448,061.15 |
| $2,266.67 | 20 | 3% | $408,704.74 |
| $2,266.67 | 20 | 4% | $374,049.55 |
| $2,266.67 | 20 | 5% | $343,457.38 |
| $2,266.67 | 20 | 6% | $316,383.08 |
| $2,266.67 | 20 | 7% | $292,360.35 |
| $2,266.67 | 20 | 8% | $270,989.73 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,266.67 | 25 | 1% | $601,441.32 |
| $2,266.67 | 25 | 2% | $534,774.91 |
| $2,266.67 | 25 | 3% | $477,986.63 |
| $2,266.67 | 25 | 4% | $429,425.63 |
| $2,266.67 | 25 | 5% | $387,736.11 |
| $2,266.67 | 25 | 6% | $351,802.23 |
| $2,266.67 | 25 | 7% | $320,703.65 |
| $2,266.67 | 25 | 8% | $293,679.58 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,266.67 | 30 | 1% | $704,722.69 |
| $2,266.67 | 30 | 2% | $613,243.3 |
| $2,266.67 | 30 | 3% | $537,629.26 |
| $2,266.67 | 30 | 4% | $474,778.81 |
| $2,266.67 | 30 | 5% | $422,238.33 |
| $2,266.67 | 30 | 6% | $378,060.99 |
| $2,266.67 | 30 | 7% | $340,697.15 |
| $2,266.67 | 30 | 8% | $308,909.25 |