Use this calculator to see the home you can afford if you make $1,190,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,142,632
Okay, so let's imagine you make $1,190,000 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 $226,100 a year, or $18,841.67 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 ($99,166.67), you can only spend up to $31,733.33 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 $99,166.67. With 6% interest, you will receive a loan of $4.9M (without down payment).
Your monthly interest payment remains the same $31,733.33
You will make total 300 installments
You will have to pay total amount of $9,520,000, which is 93.29% more than your original loan amount ($4,925,231.15)
For 6% interest, you will receive a loan of $5.3M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $31,733.33
You will make total 360 installments
You will have to pay total amount of $11,424,000, which is 115.84% more than your original loan amount ($5,292,853.9)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,733.33 | 20 | 1% | $6,900,136.15 |
| $31,733.33 | 20 | 2% | $6,272,856.04 |
| $31,733.33 | 20 | 3% | $5,721,866.35 |
| $31,733.33 | 20 | 4% | $5,236,693.63 |
| $31,733.33 | 20 | 5% | $4,808,403.27 |
| $31,733.33 | 20 | 6% | $4,429,363.15 |
| $31,733.33 | 20 | 7% | $4,093,044.87 |
| $31,733.33 | 20 | 8% | $3,793,856.19 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,733.33 | 25 | 1% | $8,420,178.49 |
| $31,733.33 | 25 | 2% | $7,486,848.77 |
| $31,733.33 | 25 | 3% | $6,691,812.79 |
| $31,733.33 | 25 | 4% | $6,011,958.79 |
| $31,733.33 | 25 | 5% | $5,428,305.49 |
| $31,733.33 | 25 | 6% | $4,925,231.15 |
| $31,733.33 | 25 | 7% | $4,489,851.07 |
| $31,733.33 | 25 | 8% | $4,111,514.18 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $31,733.33 | 30 | 1% | $9,866,117.6 |
| $31,733.33 | 30 | 2% | $8,585,406.26 |
| $31,733.33 | 30 | 3% | $7,526,809.71 |
| $31,733.33 | 30 | 4% | $6,646,903.36 |
| $31,733.33 | 30 | 5% | $5,911,336.65 |
| $31,733.33 | 30 | 6% | $5,292,853.9 |
| $31,733.33 | 30 | 7% | $4,769,760.16 |
| $31,733.33 | 30 | 8% | $4,324,729.55 |