Use this calculator to see the home you can afford if you make $751,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $1,983,291.29
Okay, so let's imagine you make $751,000 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 $142,690 a year, or $11,890.83 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 ($62,583.33), you can only spend up to $20,026.67 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 $62,583.33. With 6% interest, you will receive a loan of $3.1M (without down payment).
Your monthly interest payment remains the same $20,026.67
You will make total 300 installments
You will have to pay total amount of $6,008,000, which is 93.29% more than your original loan amount ($3,108,276.13)
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 $20,026.67
You will make total 360 installments
You will have to pay total amount of $7,209,600, which is 115.84% more than your original loan amount ($3,340,280.06)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $20,026.67 | 20 | 1% | $4,354,623.74 |
| $20,026.67 | 20 | 2% | $3,958,752 |
| $20,026.67 | 20 | 3% | $3,611,026.58 |
| $20,026.67 | 20 | 4% | $3,304,837.75 |
| $20,026.67 | 20 | 5% | $3,034,546.94 |
| $20,026.67 | 20 | 6% | $2,795,337.59 |
| $20,026.67 | 20 | 7% | $2,583,089.66 |
| $20,026.67 | 20 | 8% | $2,394,273.95 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $20,026.67 | 25 | 1% | $5,313,910.96 |
| $20,026.67 | 25 | 2% | $4,724,893.63 |
| $20,026.67 | 25 | 3% | $4,223,152.44 |
| $20,026.67 | 25 | 4% | $3,794,101.73 |
| $20,026.67 | 25 | 5% | $3,425,762.54 |
| $20,026.67 | 25 | 6% | $3,108,276.13 |
| $20,026.67 | 25 | 7% | $2,833,511.05 |
| $20,026.67 | 25 | 8% | $2,594,745.51 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $20,026.67 | 30 | 1% | $6,226,432.2 |
| $20,026.67 | 30 | 2% | $5,418,184.96 |
| $20,026.67 | 30 | 3% | $4,750,112.68 |
| $20,026.67 | 30 | 4% | $4,194,810.44 |
| $20,026.67 | 30 | 5% | $3,730,599.85 |
| $20,026.67 | 30 | 6% | $3,340,280.06 |
| $20,026.67 | 30 | 7% | $3,010,159.56 |
| $20,026.67 | 30 | 8% | $2,729,304.11 |