Use this calculator to see the home you can afford if you make $1,300,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,433,127.4
Okay, so let's imagine you make $1,300,000 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 $247,000 a year, or $20,583.33 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 ($108,333.33), you can only spend up to $34,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $4.8M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $108,333.33. With 6% interest, you will receive a loan of $5.4M (without down payment).
Your monthly interest payment remains the same $34,666.67
You will make total 300 installments
You will have to pay total amount of $10,400,000, which is 93.29% more than your original loan amount ($5,380,504.62)
For 6% interest, you will receive a loan of $5.8M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $34,666.67
You will make total 360 installments
You will have to pay total amount of $12,480,000, which is 115.84% more than your original loan amount ($5,782,109.3)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $34,666.67 | 20 | 1% | $7,537,963.86 |
| $34,666.67 | 20 | 2% | $6,852,699.87 |
| $34,666.67 | 20 | 3% | $6,250,778.37 |
| $34,666.67 | 20 | 4% | $5,720,757.75 |
| $34,666.67 | 20 | 5% | $5,252,877.52 |
| $34,666.67 | 20 | 6% | $4,838,800.09 |
| $34,666.67 | 20 | 7% | $4,471,393.56 |
| $34,666.67 | 20 | 8% | $4,144,548.78 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $34,666.67 | 25 | 1% | $9,198,514.32 |
| $34,666.67 | 25 | 2% | $8,178,910.42 |
| $34,666.67 | 25 | 3% | $7,310,383.72 |
| $34,666.67 | 25 | 4% | $6,567,686.08 |
| $34,666.67 | 25 | 5% | $5,930,081.63 |
| $34,666.67 | 25 | 6% | $5,380,504.62 |
| $34,666.67 | 25 | 7% | $4,904,879.32 |
| $34,666.67 | 25 | 8% | $4,491,570.12 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $34,666.67 | 30 | 1% | $10,778,111.66 |
| $34,666.67 | 30 | 2% | $9,379,015.24 |
| $34,666.67 | 30 | 3% | $8,222,565.23 |
| $34,666.67 | 30 | 4% | $7,261,323 |
| $34,666.67 | 30 | 5% | $6,457,762.72 |
| $34,666.67 | 30 | 6% | $5,782,109.3 |
| $34,666.67 | 30 | 7% | $5,210,662.36 |
| $34,666.67 | 30 | 8% | $4,724,494.46 |