Use this calculator to see the home you can afford if you make $750,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,980,650.42
Okay, so let's imagine you make $750,000 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 $142,500 a year, or $11,875 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 ($62,500), you can only spend up to $20,000 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $2.8M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $62,500. With 6% interest, you will receive a loan of $3.1M (without down payment).
Your monthly interest payment remains the same $20,000
You will make total 300 installments
You will have to pay total amount of $6,000,000, which is 93.29% more than your original loan amount ($3,104,137.28)
For 6% interest, you will receive a loan of $3.3M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $20,000
You will make total 360 installments
You will have to pay total amount of $7,200,000, which is 115.84% more than your original loan amount ($3,335,832.29)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $20,000 | 20 | 1% | $4,348,825.31 |
| $20,000 | 20 | 2% | $3,953,480.7 |
| $20,000 | 20 | 3% | $3,606,218.29 |
| $20,000 | 20 | 4% | $3,300,437.16 |
| $20,000 | 20 | 5% | $3,030,506.26 |
| $20,000 | 20 | 6% | $2,791,615.43 |
| $20,000 | 20 | 7% | $2,579,650.13 |
| $20,000 | 20 | 8% | $2,391,085.83 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $20,000 | 25 | 1% | $5,306,835.18 |
| $20,000 | 25 | 2% | $4,718,602.17 |
| $20,000 | 25 | 3% | $4,217,529.07 |
| $20,000 | 25 | 4% | $3,789,049.66 |
| $20,000 | 25 | 5% | $3,421,200.94 |
| $20,000 | 25 | 6% | $3,104,137.28 |
| $20,000 | 25 | 7% | $2,829,738.07 |
| $20,000 | 25 | 8% | $2,591,290.45 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $20,000 | 30 | 1% | $6,218,141.34 |
| $20,000 | 30 | 2% | $5,410,970.33 |
| $20,000 | 30 | 3% | $4,743,787.63 |
| $20,000 | 30 | 4% | $4,189,224.81 |
| $20,000 | 30 | 5% | $3,725,632.34 |
| $20,000 | 30 | 6% | $3,335,832.29 |
| $20,000 | 30 | 7% | $3,006,151.36 |
| $20,000 | 30 | 8% | $2,725,669.88 |