Use this calculator to see the home you can afford if you make $1,000,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,640,867.23
Okay, so let's imagine you make $1,000,000 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 $190,000 a year, or $15,833.33 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 ($83,333.33), you can only spend up to $26,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.7M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $83,333.33. With 6% interest, you will receive a loan of $4.1M (without down payment).
Your monthly interest payment remains the same $26,666.67
You will make total 300 installments
You will have to pay total amount of $8,000,000, which is 93.29% more than your original loan amount ($4,138,849.71)
For 6% interest, you will receive a loan of $4.4M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $26,666.67
You will make total 360 installments
You will have to pay total amount of $9,600,000, which is 115.84% more than your original loan amount ($4,447,776.38)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $26,666.67 | 20 | 1% | $5,798,433.74 |
| $26,666.67 | 20 | 2% | $5,271,307.6 |
| $26,666.67 | 20 | 3% | $4,808,291.05 |
| $26,666.67 | 20 | 4% | $4,400,582.89 |
| $26,666.67 | 20 | 5% | $4,040,675.02 |
| $26,666.67 | 20 | 6% | $3,722,153.91 |
| $26,666.67 | 20 | 7% | $3,439,533.51 |
| $26,666.67 | 20 | 8% | $3,188,114.45 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $26,666.67 | 25 | 1% | $7,075,780.25 |
| $26,666.67 | 25 | 2% | $6,291,469.55 |
| $26,666.67 | 25 | 3% | $5,623,372.09 |
| $26,666.67 | 25 | 4% | $5,052,066.21 |
| $26,666.67 | 25 | 5% | $4,561,601.25 |
| $26,666.67 | 25 | 6% | $4,138,849.71 |
| $26,666.67 | 25 | 7% | $3,772,984.09 |
| $26,666.67 | 25 | 8% | $3,455,053.94 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $26,666.67 | 30 | 1% | $8,290,855.13 |
| $26,666.67 | 30 | 2% | $7,214,627.11 |
| $26,666.67 | 30 | 3% | $6,325,050.17 |
| $26,666.67 | 30 | 4% | $5,585,633.08 |
| $26,666.67 | 30 | 5% | $4,967,509.79 |
| $26,666.67 | 30 | 6% | $4,447,776.38 |
| $26,666.67 | 30 | 7% | $4,008,201.81 |
| $26,666.67 | 30 | 8% | $3,634,226.51 |