Use this calculator to see the home you can afford if you make $1,050,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,772,910.59
Okay, so let's imagine you make $1,050,000 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 $199,500 a year, or $16,625 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 ($87,500), you can only spend up to $28,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.9M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $87,500. With 6% interest, you will receive a loan of $4.3M (without down payment).
Your monthly interest payment remains the same $28,000
You will make total 300 installments
You will have to pay total amount of $8,400,000, which is 93.29% more than your original loan amount ($4,345,792.19)
For 6% interest, you will receive a loan of $4.7M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $28,000
You will make total 360 installments
You will have to pay total amount of $10,080,000, which is 115.84% more than your original loan amount ($4,670,165.2)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $28,000 | 20 | 1% | $6,088,355.43 |
| $28,000 | 20 | 2% | $5,534,872.98 |
| $28,000 | 20 | 3% | $5,048,705.6 |
| $28,000 | 20 | 4% | $4,620,612.03 |
| $28,000 | 20 | 5% | $4,242,708.77 |
| $28,000 | 20 | 6% | $3,908,261.61 |
| $28,000 | 20 | 7% | $3,611,510.18 |
| $28,000 | 20 | 8% | $3,347,520.17 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $28,000 | 25 | 1% | $7,429,569.26 |
| $28,000 | 25 | 2% | $6,606,043.03 |
| $28,000 | 25 | 3% | $5,904,540.69 |
| $28,000 | 25 | 4% | $5,304,669.52 |
| $28,000 | 25 | 5% | $4,789,681.32 |
| $28,000 | 25 | 6% | $4,345,792.19 |
| $28,000 | 25 | 7% | $3,961,633.29 |
| $28,000 | 25 | 8% | $3,627,806.63 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $28,000 | 30 | 1% | $8,705,397.88 |
| $28,000 | 30 | 2% | $7,575,358.46 |
| $28,000 | 30 | 3% | $6,641,302.68 |
| $28,000 | 30 | 4% | $5,864,914.73 |
| $28,000 | 30 | 5% | $5,215,885.28 |
| $28,000 | 30 | 6% | $4,670,165.2 |
| $28,000 | 30 | 7% | $4,208,611.9 |
| $28,000 | 30 | 8% | $3,815,937.84 |