Use this calculator to see the home you can afford if you make $1,250,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,301,084.03
Okay, so let's imagine you make $1,250,000 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 $237,500 a year, or $19,791.67 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 ($104,166.67), you can only spend up to $33,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $4.7M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $104,166.67. With 6% interest, you will receive a loan of $5.2M (without down payment).
Your monthly interest payment remains the same $33,333.33
You will make total 300 installments
You will have to pay total amount of $10,000,000, which is 93.29% more than your original loan amount ($5,173,562.13)
For 6% interest, you will receive a loan of $5.6M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $33,333.33
You will make total 360 installments
You will have to pay total amount of $12,000,000, which is 115.84% more than your original loan amount ($5,559,720.48)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,333.33 | 20 | 1% | $7,248,042.18 |
| $33,333.33 | 20 | 2% | $6,589,134.49 |
| $33,333.33 | 20 | 3% | $6,010,363.81 |
| $33,333.33 | 20 | 4% | $5,500,728.61 |
| $33,333.33 | 20 | 5% | $5,050,843.77 |
| $33,333.33 | 20 | 6% | $4,652,692.39 |
| $33,333.33 | 20 | 7% | $4,299,416.88 |
| $33,333.33 | 20 | 8% | $3,985,143.06 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,333.33 | 25 | 1% | $8,844,725.31 |
| $33,333.33 | 25 | 2% | $7,864,336.94 |
| $33,333.33 | 25 | 3% | $7,029,215.11 |
| $33,333.33 | 25 | 4% | $6,315,082.77 |
| $33,333.33 | 25 | 5% | $5,702,001.57 |
| $33,333.33 | 25 | 6% | $5,173,562.13 |
| $33,333.33 | 25 | 7% | $4,716,230.11 |
| $33,333.33 | 25 | 8% | $4,318,817.42 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,333.33 | 30 | 1% | $10,363,568.91 |
| $33,333.33 | 30 | 2% | $9,018,283.88 |
| $33,333.33 | 30 | 3% | $7,906,312.72 |
| $33,333.33 | 30 | 4% | $6,982,041.35 |
| $33,333.33 | 30 | 5% | $6,209,387.23 |
| $33,333.33 | 30 | 6% | $5,559,720.48 |
| $33,333.33 | 30 | 7% | $5,010,252.26 |
| $33,333.33 | 30 | 8% | $4,542,783.14 |