Use this calculator to see the home you can afford if you make $510,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,346,842.29
Okay, so let's imagine you make $510,000 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 $96,900 a year, or $8,075 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 ($42,500), you can only spend up to $13,600 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $1.9M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $42,500. With 6% interest, you will receive a loan of $2.1M (without down payment).
Your monthly interest payment remains the same $13,600
You will make total 300 installments
You will have to pay total amount of $4,080,000, which is 93.29% more than your original loan amount ($2,110,813.35)
For 6% interest, you will receive a loan of $2.3M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $13,600
You will make total 360 installments
You will have to pay total amount of $4,896,000, which is 115.84% more than your original loan amount ($2,268,365.96)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,600 | 20 | 1% | $2,957,201.21 |
| $13,600 | 20 | 2% | $2,688,366.87 |
| $13,600 | 20 | 3% | $2,452,228.44 |
| $13,600 | 20 | 4% | $2,244,297.27 |
| $13,600 | 20 | 5% | $2,060,744.26 |
| $13,600 | 20 | 6% | $1,898,298.49 |
| $13,600 | 20 | 7% | $1,754,162.09 |
| $13,600 | 20 | 8% | $1,625,938.37 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,600 | 25 | 1% | $3,608,647.93 |
| $13,600 | 25 | 2% | $3,208,649.47 |
| $13,600 | 25 | 3% | $2,867,919.77 |
| $13,600 | 25 | 4% | $2,576,553.77 |
| $13,600 | 25 | 5% | $2,326,416.64 |
| $13,600 | 25 | 6% | $2,110,813.35 |
| $13,600 | 25 | 7% | $1,924,221.89 |
| $13,600 | 25 | 8% | $1,762,077.51 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,600 | 30 | 1% | $4,228,336.11 |
| $13,600 | 30 | 2% | $3,679,459.82 |
| $13,600 | 30 | 3% | $3,225,775.59 |
| $13,600 | 30 | 4% | $2,848,672.87 |
| $13,600 | 30 | 5% | $2,533,429.99 |
| $13,600 | 30 | 6% | $2,268,365.96 |
| $13,600 | 30 | 7% | $2,044,182.92 |
| $13,600 | 30 | 8% | $1,853,455.52 |