Use this calculator to see the home you can afford if you make $1,500,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $3,961,300.84
Okay, so let's imagine you make $1,500,000 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 $285,000 a year, or $23,750 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 ($125,000), you can only spend up to $40,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $5.6M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $125,000. With 6% interest, you will receive a loan of $6.2M (without down payment).
Your monthly interest payment remains the same $40,000
You will make total 300 installments
You will have to pay total amount of $12,000,000, which is 93.29% more than your original loan amount ($6,208,274.56)
For 6% interest, you will receive a loan of $6.7M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $40,000
You will make total 360 installments
You will have to pay total amount of $14,400,000, which is 115.84% more than your original loan amount ($6,671,664.58)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $40,000 | 20 | 1% | $8,697,650.61 |
| $40,000 | 20 | 2% | $7,906,961.39 |
| $40,000 | 20 | 3% | $7,212,436.58 |
| $40,000 | 20 | 4% | $6,600,874.33 |
| $40,000 | 20 | 5% | $6,061,012.52 |
| $40,000 | 20 | 6% | $5,583,230.87 |
| $40,000 | 20 | 7% | $5,159,300.26 |
| $40,000 | 20 | 8% | $4,782,171.67 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $40,000 | 25 | 1% | $10,613,670.37 |
| $40,000 | 25 | 2% | $9,437,204.33 |
| $40,000 | 25 | 3% | $8,435,058.13 |
| $40,000 | 25 | 4% | $7,578,099.32 |
| $40,000 | 25 | 5% | $6,842,401.88 |
| $40,000 | 25 | 6% | $6,208,274.56 |
| $40,000 | 25 | 7% | $5,659,476.14 |
| $40,000 | 25 | 8% | $5,182,580.9 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $40,000 | 30 | 1% | $12,436,282.69 |
| $40,000 | 30 | 2% | $10,821,940.66 |
| $40,000 | 30 | 3% | $9,487,575.26 |
| $40,000 | 30 | 4% | $8,378,449.62 |
| $40,000 | 30 | 5% | $7,451,264.68 |
| $40,000 | 30 | 6% | $6,671,664.58 |
| $40,000 | 30 | 7% | $6,012,302.72 |
| $40,000 | 30 | 8% | $5,451,339.77 |