Use this calculator to see the home you can afford if you make $2,000,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $5,281,734.46
Okay, so let's imagine you make $2,000,000 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 $380,000 a year, or $31,666.67 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 ($166,666.67), you can only spend up to $53,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $7.4M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $166,666.67. With 6% interest, you will receive a loan of $8.3M (without down payment).
Your monthly interest payment remains the same $53,333.33
You will make total 300 installments
You will have to pay total amount of $16,000,000, which is 93.29% more than your original loan amount ($8,277,699.41)
For 6% interest, you will receive a loan of $8.9M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $53,333.33
You will make total 360 installments
You will have to pay total amount of $19,200,000, which is 115.84% more than your original loan amount ($8,895,552.77)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $53,333.33 | 20 | 1% | $11,596,867.48 |
| $53,333.33 | 20 | 2% | $10,542,615.19 |
| $53,333.33 | 20 | 3% | $9,616,582.1 |
| $53,333.33 | 20 | 4% | $8,801,165.77 |
| $53,333.33 | 20 | 5% | $8,081,350.03 |
| $53,333.33 | 20 | 6% | $7,444,307.82 |
| $53,333.33 | 20 | 7% | $6,879,067.01 |
| $53,333.33 | 20 | 8% | $6,376,228.89 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $53,333.33 | 25 | 1% | $14,151,560.49 |
| $53,333.33 | 25 | 2% | $12,582,939.11 |
| $53,333.33 | 25 | 3% | $11,246,744.18 |
| $53,333.33 | 25 | 4% | $10,104,132.43 |
| $53,333.33 | 25 | 5% | $9,123,202.51 |
| $53,333.33 | 25 | 6% | $8,277,699.41 |
| $53,333.33 | 25 | 7% | $7,545,968.18 |
| $53,333.33 | 25 | 8% | $6,910,107.87 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $53,333.33 | 30 | 1% | $16,581,710.25 |
| $53,333.33 | 30 | 2% | $14,429,254.21 |
| $53,333.33 | 30 | 3% | $12,650,100.35 |
| $53,333.33 | 30 | 4% | $11,171,266.16 |
| $53,333.33 | 30 | 5% | $9,935,019.58 |
| $53,333.33 | 30 | 6% | $8,895,552.77 |
| $53,333.33 | 30 | 7% | $8,016,403.62 |
| $53,333.33 | 30 | 8% | $7,268,453.02 |