Use this calculator to see the home you can afford if you make $700,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,848,607.06
Okay, so let's imagine you make $700,000 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 $133,000 a year, or $11,083.33 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 ($58,333.33), you can only spend up to $18,666.67 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 $58,333.33. With 6% interest, you will receive a loan of $2.9M (without down payment).
Your monthly interest payment remains the same $18,666.67
You will make total 300 installments
You will have to pay total amount of $5,600,000, which is 93.29% more than your original loan amount ($2,897,194.79)
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 $18,666.67
You will make total 360 installments
You will have to pay total amount of $6,720,000, which is 115.84% more than your original loan amount ($3,113,443.47)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $18,666.67 | 20 | 1% | $4,058,903.62 |
| $18,666.67 | 20 | 2% | $3,689,915.32 |
| $18,666.67 | 20 | 3% | $3,365,803.74 |
| $18,666.67 | 20 | 4% | $3,080,408.02 |
| $18,666.67 | 20 | 5% | $2,828,472.51 |
| $18,666.67 | 20 | 6% | $2,605,507.74 |
| $18,666.67 | 20 | 7% | $2,407,673.45 |
| $18,666.67 | 20 | 8% | $2,231,680.11 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $18,666.67 | 25 | 1% | $4,953,046.17 |
| $18,666.67 | 25 | 2% | $4,404,028.69 |
| $18,666.67 | 25 | 3% | $3,936,360.46 |
| $18,666.67 | 25 | 4% | $3,536,446.35 |
| $18,666.67 | 25 | 5% | $3,193,120.88 |
| $18,666.67 | 25 | 6% | $2,897,194.79 |
| $18,666.67 | 25 | 7% | $2,641,088.86 |
| $18,666.67 | 25 | 8% | $2,418,537.76 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $18,666.67 | 30 | 1% | $5,803,598.59 |
| $18,666.67 | 30 | 2% | $5,050,238.97 |
| $18,666.67 | 30 | 3% | $4,427,535.12 |
| $18,666.67 | 30 | 4% | $3,909,943.16 |
| $18,666.67 | 30 | 5% | $3,477,256.85 |
| $18,666.67 | 30 | 6% | $3,113,443.47 |
| $18,666.67 | 30 | 7% | $2,805,741.27 |
| $18,666.67 | 30 | 8% | $2,543,958.56 |