Use this calculator to see the home you can afford if you make $1,750,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $4,621,517.65
Okay, so let's imagine you make $1,750,000 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 $332,500 a year, or $27,708.33 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 ($145,833.33), you can only spend up to $46,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $6.5M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $145,833.33. With 6% interest, you will receive a loan of $7.2M (without down payment).
Your monthly interest payment remains the same $46,666.67
You will make total 300 installments
You will have to pay total amount of $14,000,000, which is 93.29% more than your original loan amount ($7,242,986.99)
For 6% interest, you will receive a loan of $7.8M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $46,666.67
You will make total 360 installments
You will have to pay total amount of $16,800,000, which is 115.84% more than your original loan amount ($7,783,608.67)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $46,666.67 | 20 | 1% | $10,147,259.05 |
| $46,666.67 | 20 | 2% | $9,224,788.29 |
| $46,666.67 | 20 | 3% | $8,414,509.34 |
| $46,666.67 | 20 | 4% | $7,701,020.05 |
| $46,666.67 | 20 | 5% | $7,071,181.28 |
| $46,666.67 | 20 | 6% | $6,513,769.35 |
| $46,666.67 | 20 | 7% | $6,019,183.64 |
| $46,666.67 | 20 | 8% | $5,579,200.28 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $46,666.67 | 25 | 1% | $12,382,615.43 |
| $46,666.67 | 25 | 2% | $11,010,071.72 |
| $46,666.67 | 25 | 3% | $9,840,901.16 |
| $46,666.67 | 25 | 4% | $8,841,115.87 |
| $46,666.67 | 25 | 5% | $7,982,802.2 |
| $46,666.67 | 25 | 6% | $7,242,986.99 |
| $46,666.67 | 25 | 7% | $6,602,722.16 |
| $46,666.67 | 25 | 8% | $6,046,344.39 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $46,666.67 | 30 | 1% | $14,508,996.47 |
| $46,666.67 | 30 | 2% | $12,625,597.44 |
| $46,666.67 | 30 | 3% | $11,068,837.8 |
| $46,666.67 | 30 | 4% | $9,774,857.89 |
| $46,666.67 | 30 | 5% | $8,693,142.13 |
| $46,666.67 | 30 | 6% | $7,783,608.67 |
| $46,666.67 | 30 | 7% | $7,014,353.17 |
| $46,666.67 | 30 | 8% | $6,359,896.39 |