Use this calculator to see the home you can afford if you make $90,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $237,678.05
Okay, so let's imagine you make $90,000 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 $17,100 a year, or $1,425 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 ($7,500), you can only spend up to $2,400 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $335.0K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $7,500. With 6% interest, you will receive a loan of $372.5K (without down payment).
Your monthly interest payment remains the same $2,400
You will make total 300 installments
You will have to pay total amount of $720,000, which is 93.29% more than your original loan amount ($372,496.47)
For 6% interest, you will receive a loan of $400.3K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $2,400
You will make total 360 installments
You will have to pay total amount of $864,000, which is 115.84% more than your original loan amount ($400,299.87)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,400 | 20 | 1% | $521,859.04 |
| $2,400 | 20 | 2% | $474,417.68 |
| $2,400 | 20 | 3% | $432,746.19 |
| $2,400 | 20 | 4% | $396,052.46 |
| $2,400 | 20 | 5% | $363,660.75 |
| $2,400 | 20 | 6% | $334,993.85 |
| $2,400 | 20 | 7% | $309,558.02 |
| $2,400 | 20 | 8% | $286,930.3 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,400 | 25 | 1% | $636,820.22 |
| $2,400 | 25 | 2% | $566,232.26 |
| $2,400 | 25 | 3% | $506,103.49 |
| $2,400 | 25 | 4% | $454,685.96 |
| $2,400 | 25 | 5% | $410,544.11 |
| $2,400 | 25 | 6% | $372,496.47 |
| $2,400 | 25 | 7% | $339,568.57 |
| $2,400 | 25 | 8% | $310,954.85 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $2,400 | 30 | 1% | $746,176.96 |
| $2,400 | 30 | 2% | $649,316.44 |
| $2,400 | 30 | 3% | $569,254.52 |
| $2,400 | 30 | 4% | $502,706.98 |
| $2,400 | 30 | 5% | $447,075.88 |
| $2,400 | 30 | 6% | $400,299.87 |
| $2,400 | 30 | 7% | $360,738.16 |
| $2,400 | 30 | 8% | $327,080.39 |