Use this calculator to see the home you can afford if you make $550,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,452,476.98
Okay, so let's imagine you make $550,000 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 $104,500 a year, or $8,708.33 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 ($45,833.33), you can only spend up to $14,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $2.0M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $45,833.33. With 6% interest, you will receive a loan of $2.3M (without down payment).
Your monthly interest payment remains the same $14,666.67
You will make total 300 installments
You will have to pay total amount of $4,400,000, which is 93.29% more than your original loan amount ($2,276,367.34)
For 6% interest, you will receive a loan of $2.4M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $14,666.67
You will make total 360 installments
You will have to pay total amount of $5,280,000, which is 115.84% more than your original loan amount ($2,446,277.01)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $14,666.67 | 20 | 1% | $3,189,138.56 |
| $14,666.67 | 20 | 2% | $2,899,219.18 |
| $14,666.67 | 20 | 3% | $2,644,560.08 |
| $14,666.67 | 20 | 4% | $2,420,320.59 |
| $14,666.67 | 20 | 5% | $2,222,371.26 |
| $14,666.67 | 20 | 6% | $2,047,184.65 |
| $14,666.67 | 20 | 7% | $1,891,743.43 |
| $14,666.67 | 20 | 8% | $1,753,462.94 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $14,666.67 | 25 | 1% | $3,891,679.13 |
| $14,666.67 | 25 | 2% | $3,460,308.25 |
| $14,666.67 | 25 | 3% | $3,092,854.65 |
| $14,666.67 | 25 | 4% | $2,778,636.42 |
| $14,666.67 | 25 | 5% | $2,508,880.69 |
| $14,666.67 | 25 | 6% | $2,276,367.34 |
| $14,666.67 | 25 | 7% | $2,075,141.25 |
| $14,666.67 | 25 | 8% | $1,900,279.66 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $14,666.67 | 30 | 1% | $4,559,970.32 |
| $14,666.67 | 30 | 2% | $3,968,044.91 |
| $14,666.67 | 30 | 3% | $3,478,777.6 |
| $14,666.67 | 30 | 4% | $3,072,098.19 |
| $14,666.67 | 30 | 5% | $2,732,130.38 |
| $14,666.67 | 30 | 6% | $2,446,277.01 |
| $14,666.67 | 30 | 7% | $2,204,511 |
| $14,666.67 | 30 | 8% | $1,998,824.58 |