Use this calculator to see the home you can afford if you make $400,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,056,346.89
Okay, so let's imagine you make $400,000 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 $76,000 a year, or $6,333.33 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 ($33,333.33), you can only spend up to $10,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.5M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $33,333.33. With 6% interest, you will receive a loan of $1.7M (without down payment).
Your monthly interest payment remains the same $10,666.67
You will make total 300 installments
You will have to pay total amount of $3,200,000, which is 93.29% more than your original loan amount ($1,655,539.88)
For 6% interest, you will receive a loan of $1.8M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $10,666.67
You will make total 360 installments
You will have to pay total amount of $3,840,000, which is 115.84% more than your original loan amount ($1,779,110.55)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $10,666.67 | 20 | 1% | $2,319,373.5 |
| $10,666.67 | 20 | 2% | $2,108,523.04 |
| $10,666.67 | 20 | 3% | $1,923,316.42 |
| $10,666.67 | 20 | 4% | $1,760,233.15 |
| $10,666.67 | 20 | 5% | $1,616,270.01 |
| $10,666.67 | 20 | 6% | $1,488,861.56 |
| $10,666.67 | 20 | 7% | $1,375,813.4 |
| $10,666.67 | 20 | 8% | $1,275,245.78 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $10,666.67 | 25 | 1% | $2,830,312.1 |
| $10,666.67 | 25 | 2% | $2,516,587.82 |
| $10,666.67 | 25 | 3% | $2,249,348.84 |
| $10,666.67 | 25 | 4% | $2,020,826.49 |
| $10,666.67 | 25 | 5% | $1,824,640.5 |
| $10,666.67 | 25 | 6% | $1,655,539.88 |
| $10,666.67 | 25 | 7% | $1,509,193.64 |
| $10,666.67 | 25 | 8% | $1,382,021.57 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $10,666.67 | 30 | 1% | $3,316,342.05 |
| $10,666.67 | 30 | 2% | $2,885,850.84 |
| $10,666.67 | 30 | 3% | $2,530,020.07 |
| $10,666.67 | 30 | 4% | $2,234,253.23 |
| $10,666.67 | 30 | 5% | $1,987,003.92 |
| $10,666.67 | 30 | 6% | $1,779,110.55 |
| $10,666.67 | 30 | 7% | $1,603,280.72 |
| $10,666.67 | 30 | 8% | $1,453,690.6 |