Use this calculator to see the home you can afford if you make $1,170,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,089,814.66
Okay, so let's imagine you make $1,170,000 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 $222,300 a year, or $18,525 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 ($97,500), you can only spend up to $31,200 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $4.4M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $97,500. With 6% interest, you will receive a loan of $4.8M (without down payment).
Your monthly interest payment remains the same $31,200
You will make total 300 installments
You will have to pay total amount of $9,360,000, which is 93.29% more than your original loan amount ($4,842,454.16)
For 6% interest, you will receive a loan of $5.2M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $31,200
You will make total 360 installments
You will have to pay total amount of $11,232,000, which is 115.84% more than your original loan amount ($5,203,898.37)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,200 | 20 | 1% | $6,784,167.48 |
| $31,200 | 20 | 2% | $6,167,429.89 |
| $31,200 | 20 | 3% | $5,625,700.53 |
| $31,200 | 20 | 4% | $5,148,681.98 |
| $31,200 | 20 | 5% | $4,727,589.77 |
| $31,200 | 20 | 6% | $4,354,920.08 |
| $31,200 | 20 | 7% | $4,024,254.2 |
| $31,200 | 20 | 8% | $3,730,093.9 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,200 | 25 | 1% | $8,278,662.89 |
| $31,200 | 25 | 2% | $7,361,019.38 |
| $31,200 | 25 | 3% | $6,579,345.34 |
| $31,200 | 25 | 4% | $5,910,917.47 |
| $31,200 | 25 | 5% | $5,337,073.47 |
| $31,200 | 25 | 6% | $4,842,454.16 |
| $31,200 | 25 | 7% | $4,414,391.39 |
| $31,200 | 25 | 8% | $4,042,413.11 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,200 | 30 | 1% | $9,700,300.5 |
| $31,200 | 30 | 2% | $8,441,113.71 |
| $31,200 | 30 | 3% | $7,400,308.7 |
| $31,200 | 30 | 4% | $6,535,190.7 |
| $31,200 | 30 | 5% | $5,811,986.45 |
| $31,200 | 30 | 6% | $5,203,898.37 |
| $31,200 | 30 | 7% | $4,689,596.12 |
| $31,200 | 30 | 8% | $4,252,045.02 |