Use this calculator to see the home you can afford if you make $1,100,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,904,953.95
Okay, so let's imagine you make $1,100,000 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 $209,000 a year, or $17,416.67 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 ($91,666.67), you can only spend up to $29,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $4.1M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $91,666.67. With 6% interest, you will receive a loan of $4.6M (without down payment).
Your monthly interest payment remains the same $29,333.33
You will make total 300 installments
You will have to pay total amount of $8,800,000, which is 93.29% more than your original loan amount ($4,552,734.68)
For 6% interest, you will receive a loan of $4.9M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $29,333.33
You will make total 360 installments
You will have to pay total amount of $10,560,000, which is 115.84% more than your original loan amount ($4,892,554.02)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $29,333.33 | 20 | 1% | $6,378,277.11 |
| $29,333.33 | 20 | 2% | $5,798,438.36 |
| $29,333.33 | 20 | 3% | $5,289,120.16 |
| $29,333.33 | 20 | 4% | $4,840,641.18 |
| $29,333.33 | 20 | 5% | $4,444,742.52 |
| $29,333.33 | 20 | 6% | $4,094,369.3 |
| $29,333.33 | 20 | 7% | $3,783,486.86 |
| $29,333.33 | 20 | 8% | $3,506,925.89 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $29,333.33 | 25 | 1% | $7,783,358.27 |
| $29,333.33 | 25 | 2% | $6,920,616.51 |
| $29,333.33 | 25 | 3% | $6,185,709.3 |
| $29,333.33 | 25 | 4% | $5,557,272.83 |
| $29,333.33 | 25 | 5% | $5,017,761.38 |
| $29,333.33 | 25 | 6% | $4,552,734.68 |
| $29,333.33 | 25 | 7% | $4,150,282.5 |
| $29,333.33 | 25 | 8% | $3,800,559.33 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $29,333.33 | 30 | 1% | $9,119,940.64 |
| $29,333.33 | 30 | 2% | $7,936,089.82 |
| $29,333.33 | 30 | 3% | $6,957,555.19 |
| $29,333.33 | 30 | 4% | $6,144,196.39 |
| $29,333.33 | 30 | 5% | $5,464,260.77 |
| $29,333.33 | 30 | 6% | $4,892,554.02 |
| $29,333.33 | 30 | 7% | $4,409,021.99 |
| $29,333.33 | 30 | 8% | $3,997,649.16 |