Use this calculator to see the home you can afford if you make $1,700,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $4,489,474.29
Okay, so let's imagine you make $1,700,000 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 $323,000 a year, or $26,916.67 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 ($141,666.67), you can only spend up to $45,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $6.3M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $141,666.67. With 6% interest, you will receive a loan of $7.0M (without down payment).
Your monthly interest payment remains the same $45,333.33
You will make total 300 installments
You will have to pay total amount of $13,600,000, which is 93.29% more than your original loan amount ($7,036,044.5)
For 6% interest, you will receive a loan of $7.6M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $45,333.33
You will make total 360 installments
You will have to pay total amount of $16,320,000, which is 115.84% more than your original loan amount ($7,561,219.85)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $45,333.33 | 20 | 1% | $9,857,337.36 |
| $45,333.33 | 20 | 2% | $8,961,222.91 |
| $45,333.33 | 20 | 3% | $8,174,094.79 |
| $45,333.33 | 20 | 4% | $7,480,990.91 |
| $45,333.33 | 20 | 5% | $6,869,147.53 |
| $45,333.33 | 20 | 6% | $6,327,661.65 |
| $45,333.33 | 20 | 7% | $5,847,206.96 |
| $45,333.33 | 20 | 8% | $5,419,794.56 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $45,333.33 | 25 | 1% | $12,028,826.42 |
| $45,333.33 | 25 | 2% | $10,695,498.24 |
| $45,333.33 | 25 | 3% | $9,559,732.55 |
| $45,333.33 | 25 | 4% | $8,588,512.56 |
| $45,333.33 | 25 | 5% | $7,754,722.13 |
| $45,333.33 | 25 | 6% | $7,036,044.5 |
| $45,333.33 | 25 | 7% | $6,414,072.95 |
| $45,333.33 | 25 | 8% | $5,873,591.69 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $45,333.33 | 30 | 1% | $14,094,453.71 |
| $45,333.33 | 30 | 2% | $12,264,866.08 |
| $45,333.33 | 30 | 3% | $10,752,585.29 |
| $45,333.33 | 30 | 4% | $9,495,576.23 |
| $45,333.33 | 30 | 5% | $8,444,766.64 |
| $45,333.33 | 30 | 6% | $7,561,219.85 |
| $45,333.33 | 30 | 7% | $6,813,943.08 |
| $45,333.33 | 30 | 8% | $6,178,185.07 |