Use this calculator to see the home you can afford if you make $490,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,294,024.94
Okay, so let's imagine you make $490,000 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 $93,100 a year, or $7,758.33 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 ($40,833.33), you can only spend up to $13,066.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.8M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $40,833.33. With 6% interest, you will receive a loan of $2.0M (without down payment).
Your monthly interest payment remains the same $13,066.67
You will make total 300 installments
You will have to pay total amount of $3,920,000, which is 93.29% more than your original loan amount ($2,028,036.36)
For 6% interest, you will receive a loan of $2.2M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $13,066.67
You will make total 360 installments
You will have to pay total amount of $4,704,000, which is 115.84% more than your original loan amount ($2,179,410.43)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,066.67 | 20 | 1% | $2,841,232.53 |
| $13,066.67 | 20 | 2% | $2,582,940.72 |
| $13,066.67 | 20 | 3% | $2,356,062.61 |
| $13,066.67 | 20 | 4% | $2,156,285.61 |
| $13,066.67 | 20 | 5% | $1,979,930.76 |
| $13,066.67 | 20 | 6% | $1,823,855.42 |
| $13,066.67 | 20 | 7% | $1,685,371.42 |
| $13,066.67 | 20 | 8% | $1,562,176.08 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,066.67 | 25 | 1% | $3,467,132.32 |
| $13,066.67 | 25 | 2% | $3,082,820.08 |
| $13,066.67 | 25 | 3% | $2,755,452.32 |
| $13,066.67 | 25 | 4% | $2,475,512.44 |
| $13,066.67 | 25 | 5% | $2,235,184.61 |
| $13,066.67 | 25 | 6% | $2,028,036.36 |
| $13,066.67 | 25 | 7% | $1,848,762.2 |
| $13,066.67 | 25 | 8% | $1,692,976.43 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,066.67 | 30 | 1% | $4,062,519.01 |
| $13,066.67 | 30 | 2% | $3,535,167.28 |
| $13,066.67 | 30 | 3% | $3,099,274.58 |
| $13,066.67 | 30 | 4% | $2,736,960.21 |
| $13,066.67 | 30 | 5% | $2,434,079.8 |
| $13,066.67 | 30 | 6% | $2,179,410.43 |
| $13,066.67 | 30 | 7% | $1,964,018.89 |
| $13,066.67 | 30 | 8% | $1,780,770.99 |