Use this calculator to see the home you can afford if you make $450,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,188,390.25
Okay, so let's imagine you make $450,000 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 $85,500 a year, or $7,125 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 ($37,500), you can only spend up to $12,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.7M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $37,500. With 6% interest, you will receive a loan of $1.9M (without down payment).
Your monthly interest payment remains the same $12,000
You will make total 300 installments
You will have to pay total amount of $3,600,000, which is 93.29% more than your original loan amount ($1,862,482.37)
For 6% interest, you will receive a loan of $2.0M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $12,000
You will make total 360 installments
You will have to pay total amount of $4,320,000, which is 115.84% more than your original loan amount ($2,001,499.37)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $12,000 | 20 | 1% | $2,609,295.18 |
| $12,000 | 20 | 2% | $2,372,088.42 |
| $12,000 | 20 | 3% | $2,163,730.97 |
| $12,000 | 20 | 4% | $1,980,262.3 |
| $12,000 | 20 | 5% | $1,818,303.76 |
| $12,000 | 20 | 6% | $1,674,969.26 |
| $12,000 | 20 | 7% | $1,547,790.08 |
| $12,000 | 20 | 8% | $1,434,651.5 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $12,000 | 25 | 1% | $3,184,101.11 |
| $12,000 | 25 | 2% | $2,831,161.3 |
| $12,000 | 25 | 3% | $2,530,517.44 |
| $12,000 | 25 | 4% | $2,273,429.8 |
| $12,000 | 25 | 5% | $2,052,720.56 |
| $12,000 | 25 | 6% | $1,862,482.37 |
| $12,000 | 25 | 7% | $1,697,842.84 |
| $12,000 | 25 | 8% | $1,554,774.27 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $12,000 | 30 | 1% | $3,730,884.81 |
| $12,000 | 30 | 2% | $3,246,582.2 |
| $12,000 | 30 | 3% | $2,846,272.58 |
| $12,000 | 30 | 4% | $2,513,534.89 |
| $12,000 | 30 | 5% | $2,235,379.4 |
| $12,000 | 30 | 6% | $2,001,499.37 |
| $12,000 | 30 | 7% | $1,803,690.82 |
| $12,000 | 30 | 8% | $1,635,401.93 |