Use this calculator to see the home you can afford if you make $1,240,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,274,675.36
Okay, so let's imagine you make $1,240,000 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 $235,600 a year, or $19,633.33 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 ($103,333.33), you can only spend up to $33,066.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $4.6M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $103,333.33. With 6% interest, you will receive a loan of $5.1M (without down payment).
Your monthly interest payment remains the same $33,066.67
You will make total 300 installments
You will have to pay total amount of $9,920,000, which is 93.29% more than your original loan amount ($5,132,173.64)
For 6% interest, you will receive a loan of $5.5M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $33,066.67
You will make total 360 installments
You will have to pay total amount of $11,904,000, which is 115.84% more than your original loan amount ($5,515,242.72)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,066.67 | 20 | 1% | $7,190,057.84 |
| $33,066.67 | 20 | 2% | $6,536,421.42 |
| $33,066.67 | 20 | 3% | $5,962,280.9 |
| $33,066.67 | 20 | 4% | $5,456,722.78 |
| $33,066.67 | 20 | 5% | $5,010,437.02 |
| $33,066.67 | 20 | 6% | $4,615,470.85 |
| $33,066.67 | 20 | 7% | $4,265,021.55 |
| $33,066.67 | 20 | 8% | $3,953,261.91 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,066.67 | 25 | 1% | $8,773,967.5 |
| $33,066.67 | 25 | 2% | $7,801,422.25 |
| $33,066.67 | 25 | 3% | $6,972,981.39 |
| $33,066.67 | 25 | 4% | $6,264,562.1 |
| $33,066.67 | 25 | 5% | $5,656,385.56 |
| $33,066.67 | 25 | 6% | $5,132,173.64 |
| $33,066.67 | 25 | 7% | $4,678,500.27 |
| $33,066.67 | 25 | 8% | $4,284,266.88 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,066.67 | 30 | 1% | $10,280,660.36 |
| $33,066.67 | 30 | 2% | $8,946,137.61 |
| $33,066.67 | 30 | 3% | $7,843,062.22 |
| $33,066.67 | 30 | 4% | $6,926,185.02 |
| $33,066.67 | 30 | 5% | $6,159,712.14 |
| $33,066.67 | 30 | 6% | $5,515,242.72 |
| $33,066.67 | 30 | 7% | $4,970,170.25 |
| $33,066.67 | 30 | 8% | $4,506,440.87 |