Use this calculator to see the home you can afford if you make $670,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,769,381.04
Okay, so let's imagine you make $670,000 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 $127,300 a year, or $10,608.33 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 ($55,833.33), you can only spend up to $17,866.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $2.5M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $55,833.33. With 6% interest, you will receive a loan of $2.8M (without down payment).
Your monthly interest payment remains the same $17,866.67
You will make total 300 installments
You will have to pay total amount of $5,360,000, which is 93.29% more than your original loan amount ($2,773,029.3)
For 6% interest, you will receive a loan of $3.0M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $17,866.67
You will make total 360 installments
You will have to pay total amount of $6,432,000, which is 115.84% more than your original loan amount ($2,980,010.18)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $17,866.67 | 20 | 1% | $3,884,950.61 |
| $17,866.67 | 20 | 2% | $3,531,776.09 |
| $17,866.67 | 20 | 3% | $3,221,555 |
| $17,866.67 | 20 | 4% | $2,948,390.53 |
| $17,866.67 | 20 | 5% | $2,707,252.26 |
| $17,866.67 | 20 | 6% | $2,493,843.12 |
| $17,866.67 | 20 | 7% | $2,304,487.45 |
| $17,866.67 | 20 | 8% | $2,136,036.68 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $17,866.67 | 25 | 1% | $4,740,772.76 |
| $17,866.67 | 25 | 2% | $4,215,284.6 |
| $17,866.67 | 25 | 3% | $3,767,659.3 |
| $17,866.67 | 25 | 4% | $3,384,884.36 |
| $17,866.67 | 25 | 5% | $3,056,272.84 |
| $17,866.67 | 25 | 6% | $2,773,029.3 |
| $17,866.67 | 25 | 7% | $2,527,899.34 |
| $17,866.67 | 25 | 8% | $2,314,886.14 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $17,866.67 | 30 | 1% | $5,554,872.93 |
| $17,866.67 | 30 | 2% | $4,833,800.16 |
| $17,866.67 | 30 | 3% | $4,237,783.62 |
| $17,866.67 | 30 | 4% | $3,742,374.16 |
| $17,866.67 | 30 | 5% | $3,328,231.56 |
| $17,866.67 | 30 | 6% | $2,980,010.18 |
| $17,866.67 | 30 | 7% | $2,685,495.21 |
| $17,866.67 | 30 | 8% | $2,434,931.76 |