Use this calculator to see the home you can afford if you make $1,800,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $4,753,561.01
Okay, so let's imagine you make $1,800,000 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 $342,000 a year, or $28,500 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 ($150,000), you can only spend up to $48,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $6.7M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $150,000. With 6% interest, you will receive a loan of $7.4M (without down payment).
Your monthly interest payment remains the same $48,000
You will make total 300 installments
You will have to pay total amount of $14,400,000, which is 93.29% more than your original loan amount ($7,449,929.47)
For 6% interest, you will receive a loan of $8.0M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $48,000
You will make total 360 installments
You will have to pay total amount of $17,280,000, which is 115.84% more than your original loan amount ($8,005,997.49)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $48,000 | 20 | 1% | $10,437,180.73 |
| $48,000 | 20 | 2% | $9,488,353.67 |
| $48,000 | 20 | 3% | $8,654,923.89 |
| $48,000 | 20 | 4% | $7,921,049.2 |
| $48,000 | 20 | 5% | $7,273,215.03 |
| $48,000 | 20 | 6% | $6,699,877.04 |
| $48,000 | 20 | 7% | $6,191,160.31 |
| $48,000 | 20 | 8% | $5,738,606 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $48,000 | 25 | 1% | $12,736,404.44 |
| $48,000 | 25 | 2% | $11,324,645.2 |
| $48,000 | 25 | 3% | $10,122,069.76 |
| $48,000 | 25 | 4% | $9,093,719.18 |
| $48,000 | 25 | 5% | $8,210,882.26 |
| $48,000 | 25 | 6% | $7,449,929.47 |
| $48,000 | 25 | 7% | $6,791,371.36 |
| $48,000 | 25 | 8% | $6,219,097.08 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $48,000 | 30 | 1% | $14,923,539.23 |
| $48,000 | 30 | 2% | $12,986,328.79 |
| $48,000 | 30 | 3% | $11,385,090.31 |
| $48,000 | 30 | 4% | $10,054,139.54 |
| $48,000 | 30 | 5% | $8,941,517.62 |
| $48,000 | 30 | 6% | $8,005,997.49 |
| $48,000 | 30 | 7% | $7,214,763.26 |
| $48,000 | 30 | 8% | $6,541,607.72 |