Use this calculator to see the home you can afford if you make $1,270,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,353,901.38
Okay, so let's imagine you make $1,270,000 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 $241,300 a year, or $20,108.33 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 ($105,833.33), you can only spend up to $33,866.67 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 $105,833.33. With 6% interest, you will receive a loan of $5.3M (without down payment).
Your monthly interest payment remains the same $33,866.67
You will make total 300 installments
You will have to pay total amount of $10,160,000, which is 93.29% more than your original loan amount ($5,256,339.13)
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 $33,866.67
You will make total 360 installments
You will have to pay total amount of $12,192,000, which is 115.84% more than your original loan amount ($5,648,676.01)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,866.67 | 20 | 1% | $7,364,010.85 |
| $33,866.67 | 20 | 2% | $6,694,560.65 |
| $33,866.67 | 20 | 3% | $6,106,529.63 |
| $33,866.67 | 20 | 4% | $5,588,740.27 |
| $33,866.67 | 20 | 5% | $5,131,657.27 |
| $33,866.67 | 20 | 6% | $4,727,135.47 |
| $33,866.67 | 20 | 7% | $4,368,207.55 |
| $33,866.67 | 20 | 8% | $4,048,905.35 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,866.67 | 25 | 1% | $8,986,240.91 |
| $33,866.67 | 25 | 2% | $7,990,166.33 |
| $33,866.67 | 25 | 3% | $7,141,682.55 |
| $33,866.67 | 25 | 4% | $6,416,124.09 |
| $33,866.67 | 25 | 5% | $5,793,233.59 |
| $33,866.67 | 25 | 6% | $5,256,339.13 |
| $33,866.67 | 25 | 7% | $4,791,689.79 |
| $33,866.67 | 25 | 8% | $4,387,918.5 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $33,866.67 | 30 | 1% | $10,529,386.01 |
| $33,866.67 | 30 | 2% | $9,162,576.42 |
| $33,866.67 | 30 | 3% | $8,032,813.72 |
| $33,866.67 | 30 | 4% | $7,093,754.01 |
| $33,866.67 | 30 | 5% | $6,308,737.43 |
| $33,866.67 | 30 | 6% | $5,648,676.01 |
| $33,866.67 | 30 | 7% | $5,090,416.3 |
| $33,866.67 | 30 | 8% | $4,615,467.67 |