Use this calculator to see the home you can afford if you make $1,200,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,169,040.67
Okay, so let's imagine you make $1,200,000 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 $228,000 a year, or $19,000 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 ($100,000), you can only spend up to $32,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $4.5M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $100,000. With 6% interest, you will receive a loan of $5.0M (without down payment).
Your monthly interest payment remains the same $32,000
You will make total 300 installments
You will have to pay total amount of $9,600,000, which is 93.29% more than your original loan amount ($4,966,619.65)
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 $32,000
You will make total 360 installments
You will have to pay total amount of $11,520,000, which is 115.84% more than your original loan amount ($5,337,331.66)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $32,000 | 20 | 1% | $6,958,120.49 |
| $32,000 | 20 | 2% | $6,325,569.12 |
| $32,000 | 20 | 3% | $5,769,949.26 |
| $32,000 | 20 | 4% | $5,280,699.46 |
| $32,000 | 20 | 5% | $4,848,810.02 |
| $32,000 | 20 | 6% | $4,466,584.69 |
| $32,000 | 20 | 7% | $4,127,440.21 |
| $32,000 | 20 | 8% | $3,825,737.33 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $32,000 | 25 | 1% | $8,490,936.29 |
| $32,000 | 25 | 2% | $7,549,763.46 |
| $32,000 | 25 | 3% | $6,748,046.51 |
| $32,000 | 25 | 4% | $6,062,479.46 |
| $32,000 | 25 | 5% | $5,473,921.51 |
| $32,000 | 25 | 6% | $4,966,619.65 |
| $32,000 | 25 | 7% | $4,527,580.91 |
| $32,000 | 25 | 8% | $4,146,064.72 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $32,000 | 30 | 1% | $9,949,026.15 |
| $32,000 | 30 | 2% | $8,657,552.53 |
| $32,000 | 30 | 3% | $7,590,060.21 |
| $32,000 | 30 | 4% | $6,702,759.69 |
| $32,000 | 30 | 5% | $5,961,011.75 |
| $32,000 | 30 | 6% | $5,337,331.66 |
| $32,000 | 30 | 7% | $4,809,842.17 |
| $32,000 | 30 | 8% | $4,361,071.81 |