Use this calculator to see the home you can afford if you make $600,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,584,520.34
Okay, so let's imagine you make $600,000 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 $114,000 a year, or $9,500 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 ($50,000), you can only spend up to $16,000 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 $50,000. With 6% interest, you will receive a loan of $2.5M (without down payment).
Your monthly interest payment remains the same $16,000
You will make total 300 installments
You will have to pay total amount of $4,800,000, which is 93.29% more than your original loan amount ($2,483,309.82)
For 6% interest, you will receive a loan of $2.7M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $16,000
You will make total 360 installments
You will have to pay total amount of $5,760,000, which is 115.84% more than your original loan amount ($2,668,665.83)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $16,000 | 20 | 1% | $3,479,060.24 |
| $16,000 | 20 | 2% | $3,162,784.56 |
| $16,000 | 20 | 3% | $2,884,974.63 |
| $16,000 | 20 | 4% | $2,640,349.73 |
| $16,000 | 20 | 5% | $2,424,405.01 |
| $16,000 | 20 | 6% | $2,233,292.35 |
| $16,000 | 20 | 7% | $2,063,720.1 |
| $16,000 | 20 | 8% | $1,912,868.67 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $16,000 | 25 | 1% | $4,245,468.15 |
| $16,000 | 25 | 2% | $3,774,881.73 |
| $16,000 | 25 | 3% | $3,374,023.25 |
| $16,000 | 25 | 4% | $3,031,239.73 |
| $16,000 | 25 | 5% | $2,736,960.75 |
| $16,000 | 25 | 6% | $2,483,309.82 |
| $16,000 | 25 | 7% | $2,263,790.45 |
| $16,000 | 25 | 8% | $2,073,032.36 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $16,000 | 30 | 1% | $4,974,513.08 |
| $16,000 | 30 | 2% | $4,328,776.26 |
| $16,000 | 30 | 3% | $3,795,030.1 |
| $16,000 | 30 | 4% | $3,351,379.85 |
| $16,000 | 30 | 5% | $2,980,505.87 |
| $16,000 | 30 | 6% | $2,668,665.83 |
| $16,000 | 30 | 7% | $2,404,921.09 |
| $16,000 | 30 | 8% | $2,180,535.91 |