Use this calculator to see the home you can afford if you make $1,180,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,116,223.33
Okay, so let's imagine you make $1,180,000 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 $224,200 a year, or $18,683.33 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 ($98,333.33), you can only spend up to $31,466.67 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 $98,333.33. With 6% interest, you will receive a loan of $4.9M (without down payment).
Your monthly interest payment remains the same $31,466.67
You will make total 300 installments
You will have to pay total amount of $9,440,000, which is 93.29% more than your original loan amount ($4,883,842.65)
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 $31,466.67
You will make total 360 installments
You will have to pay total amount of $11,328,000, which is 115.84% more than your original loan amount ($5,248,376.13)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,466.67 | 20 | 1% | $6,842,151.81 |
| $31,466.67 | 20 | 2% | $6,220,142.96 |
| $31,466.67 | 20 | 3% | $5,673,783.44 |
| $31,466.67 | 20 | 4% | $5,192,687.81 |
| $31,466.67 | 20 | 5% | $4,767,996.52 |
| $31,466.67 | 20 | 6% | $4,392,141.62 |
| $31,466.67 | 20 | 7% | $4,058,649.54 |
| $31,466.67 | 20 | 8% | $3,761,975.05 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,466.67 | 25 | 1% | $8,349,420.69 |
| $31,466.67 | 25 | 2% | $7,423,934.07 |
| $31,466.67 | 25 | 3% | $6,635,579.07 |
| $31,466.67 | 25 | 4% | $5,961,438.13 |
| $31,466.67 | 25 | 5% | $5,382,689.48 |
| $31,466.67 | 25 | 6% | $4,883,842.65 |
| $31,466.67 | 25 | 7% | $4,452,121.23 |
| $31,466.67 | 25 | 8% | $4,076,963.64 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,466.67 | 30 | 1% | $9,783,209.05 |
| $31,466.67 | 30 | 2% | $8,513,259.99 |
| $31,466.67 | 30 | 3% | $7,463,559.2 |
| $31,466.67 | 30 | 4% | $6,591,047.03 |
| $31,466.67 | 30 | 5% | $5,861,661.55 |
| $31,466.67 | 30 | 6% | $5,248,376.13 |
| $31,466.67 | 30 | 7% | $4,729,678.14 |
| $31,466.67 | 30 | 8% | $4,288,387.28 |