Use this calculator to see the home you can afford if you make $691,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,824,839.25
Okay, so let's imagine you make $691,000 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 $131,290 a year, or $10,940.83 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 ($57,583.33), you can only spend up to $18,426.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $2.6M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $57,583.33. With 6% interest, you will receive a loan of $2.9M (without down payment).
Your monthly interest payment remains the same $18,426.67
You will make total 300 installments
You will have to pay total amount of $5,528,000, which is 93.29% more than your original loan amount ($2,859,945.15)
For 6% interest, you will receive a loan of $3.1M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $18,426.67
You will make total 360 installments
You will have to pay total amount of $6,633,600, which is 115.84% more than your original loan amount ($3,073,413.48)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $18,426.67 | 20 | 1% | $4,006,717.71 |
| $18,426.67 | 20 | 2% | $3,642,473.55 |
| $18,426.67 | 20 | 3% | $3,322,529.12 |
| $18,426.67 | 20 | 4% | $3,040,802.77 |
| $18,426.67 | 20 | 5% | $2,792,106.44 |
| $18,426.67 | 20 | 6% | $2,572,008.35 |
| $18,426.67 | 20 | 7% | $2,376,717.65 |
| $18,426.67 | 20 | 8% | $2,202,987.08 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $18,426.67 | 25 | 1% | $4,889,364.15 |
| $18,426.67 | 25 | 2% | $4,347,405.46 |
| $18,426.67 | 25 | 3% | $3,885,750.11 |
| $18,426.67 | 25 | 4% | $3,490,977.75 |
| $18,426.67 | 25 | 5% | $3,152,066.47 |
| $18,426.67 | 25 | 6% | $2,859,945.15 |
| $18,426.67 | 25 | 7% | $2,607,132.01 |
| $18,426.67 | 25 | 8% | $2,387,442.27 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $18,426.67 | 30 | 1% | $5,728,980.89 |
| $18,426.67 | 30 | 2% | $4,985,307.33 |
| $18,426.67 | 30 | 3% | $4,370,609.67 |
| $18,426.67 | 30 | 4% | $3,859,672.46 |
| $18,426.67 | 30 | 5% | $3,432,549.26 |
| $18,426.67 | 30 | 6% | $3,073,413.48 |
| $18,426.67 | 30 | 7% | $2,769,667.45 |
| $18,426.67 | 30 | 8% | $2,511,250.52 |