Use this calculator to see the home you can afford if you make $1,520,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $4,014,118.19
Okay, so let's imagine you make $1,520,000 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 $288,800 a year, or $24,066.67 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 ($126,666.67), you can only spend up to $40,533.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $5.7M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $126,666.67. With 6% interest, you will receive a loan of $6.3M (without down payment).
Your monthly interest payment remains the same $40,533.33
You will make total 300 installments
You will have to pay total amount of $12,160,000, which is 93.29% more than your original loan amount ($6,291,051.55)
For 6% interest, you will receive a loan of $6.8M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $40,533.33
You will make total 360 installments
You will have to pay total amount of $14,592,000, which is 115.84% more than your original loan amount ($6,760,620.1)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $40,533.33 | 20 | 1% | $8,813,619.29 |
| $40,533.33 | 20 | 2% | $8,012,387.55 |
| $40,533.33 | 20 | 3% | $7,308,602.4 |
| $40,533.33 | 20 | 4% | $6,688,885.99 |
| $40,533.33 | 20 | 5% | $6,141,826.02 |
| $40,533.33 | 20 | 6% | $5,657,673.95 |
| $40,533.33 | 20 | 7% | $5,228,090.93 |
| $40,533.33 | 20 | 8% | $4,845,933.96 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $40,533.33 | 25 | 1% | $10,755,185.97 |
| $40,533.33 | 25 | 2% | $9,563,033.72 |
| $40,533.33 | 25 | 3% | $8,547,525.58 |
| $40,533.33 | 25 | 4% | $7,679,140.64 |
| $40,533.33 | 25 | 5% | $6,933,633.91 |
| $40,533.33 | 25 | 6% | $6,291,051.55 |
| $40,533.33 | 25 | 7% | $5,734,935.82 |
| $40,533.33 | 25 | 8% | $5,251,681.98 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $40,533.33 | 30 | 1% | $12,602,099.79 |
| $40,533.33 | 30 | 2% | $10,966,233.2 |
| $40,533.33 | 30 | 3% | $9,614,076.26 |
| $40,533.33 | 30 | 4% | $8,490,162.28 |
| $40,533.33 | 30 | 5% | $7,550,614.88 |
| $40,533.33 | 30 | 6% | $6,760,620.1 |
| $40,533.33 | 30 | 7% | $6,092,466.75 |
| $40,533.33 | 30 | 8% | $5,524,024.3 |