Use this calculator to see the home you can afford if you make $580,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,531,702.99
Okay, so let's imagine you make $580,000 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 $110,200 a year, or $9,183.33 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 ($48,333.33), you can only spend up to $15,466.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $2.2M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $48,333.33. With 6% interest, you will receive a loan of $2.4M (without down payment).
Your monthly interest payment remains the same $15,466.67
You will make total 300 installments
You will have to pay total amount of $4,640,000, which is 93.29% more than your original loan amount ($2,400,532.83)
For 6% interest, you will receive a loan of $2.6M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $15,466.67
You will make total 360 installments
You will have to pay total amount of $5,568,000, which is 115.84% more than your original loan amount ($2,579,710.3)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $15,466.67 | 20 | 1% | $3,363,091.57 |
| $15,466.67 | 20 | 2% | $3,057,358.41 |
| $15,466.67 | 20 | 3% | $2,788,808.81 |
| $15,466.67 | 20 | 4% | $2,552,338.07 |
| $15,466.67 | 20 | 5% | $2,343,591.51 |
| $15,466.67 | 20 | 6% | $2,158,849.27 |
| $15,466.67 | 20 | 7% | $1,994,929.43 |
| $15,466.67 | 20 | 8% | $1,849,106.38 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $15,466.67 | 25 | 1% | $4,103,952.54 |
| $15,466.67 | 25 | 2% | $3,649,052.34 |
| $15,466.67 | 25 | 3% | $3,261,555.81 |
| $15,466.67 | 25 | 4% | $2,930,198.4 |
| $15,466.67 | 25 | 5% | $2,645,728.73 |
| $15,466.67 | 25 | 6% | $2,400,532.83 |
| $15,466.67 | 25 | 7% | $2,188,330.77 |
| $15,466.67 | 25 | 8% | $2,003,931.28 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $15,466.67 | 30 | 1% | $4,808,695.97 |
| $15,466.67 | 30 | 2% | $4,184,483.72 |
| $15,466.67 | 30 | 3% | $3,668,529.1 |
| $15,466.67 | 30 | 4% | $3,239,667.19 |
| $15,466.67 | 30 | 5% | $2,881,155.68 |
| $15,466.67 | 30 | 6% | $2,579,710.3 |
| $15,466.67 | 30 | 7% | $2,324,757.05 |
| $15,466.67 | 30 | 8% | $2,107,851.38 |