Use this calculator to see the home you can afford if you make $520,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,373,250.96
Okay, so let's imagine you make $520,000 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 $98,800 a year, or $8,233.33 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 ($43,333.33), you can only spend up to $13,866.67 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 $43,333.33. With 6% interest, you will receive a loan of $2.2M (without down payment).
Your monthly interest payment remains the same $13,866.67
You will make total 300 installments
You will have to pay total amount of $4,160,000, which is 93.29% more than your original loan amount ($2,152,201.85)
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 $13,866.67
You will make total 360 installments
You will have to pay total amount of $4,992,000, which is 115.84% more than your original loan amount ($2,312,843.72)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,866.67 | 20 | 1% | $3,015,185.55 |
| $13,866.67 | 20 | 2% | $2,741,079.95 |
| $13,866.67 | 20 | 3% | $2,500,311.35 |
| $13,866.67 | 20 | 4% | $2,288,303.1 |
| $13,866.67 | 20 | 5% | $2,101,151.01 |
| $13,866.67 | 20 | 6% | $1,935,520.03 |
| $13,866.67 | 20 | 7% | $1,788,557.42 |
| $13,866.67 | 20 | 8% | $1,657,819.51 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,866.67 | 25 | 1% | $3,679,405.73 |
| $13,866.67 | 25 | 2% | $3,271,564.17 |
| $13,866.67 | 25 | 3% | $2,924,153.49 |
| $13,866.67 | 25 | 4% | $2,627,074.43 |
| $13,866.67 | 25 | 5% | $2,372,032.65 |
| $13,866.67 | 25 | 6% | $2,152,201.85 |
| $13,866.67 | 25 | 7% | $1,961,951.73 |
| $13,866.67 | 25 | 8% | $1,796,628.05 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $13,866.67 | 30 | 1% | $4,311,244.67 |
| $13,866.67 | 30 | 2% | $3,751,606.1 |
| $13,866.67 | 30 | 3% | $3,289,026.09 |
| $13,866.67 | 30 | 4% | $2,904,529.2 |
| $13,866.67 | 30 | 5% | $2,583,105.09 |
| $13,866.67 | 30 | 6% | $2,312,843.72 |
| $13,866.67 | 30 | 7% | $2,084,264.94 |
| $13,866.67 | 30 | 8% | $1,889,797.79 |