Use this calculator to see the home you can afford if you make $790,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,086,285.11
Okay, so let's imagine you make $790,000 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 $150,100 a year, or $12,508.33 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 ($65,833.33), you can only spend up to $21,066.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $2.9M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $65,833.33. With 6% interest, you will receive a loan of $3.3M (without down payment).
Your monthly interest payment remains the same $21,066.67
You will make total 300 installments
You will have to pay total amount of $6,320,000, which is 93.29% more than your original loan amount ($3,269,691.27)
For 6% interest, you will receive a loan of $3.5M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $21,066.67
You will make total 360 installments
You will have to pay total amount of $7,584,000, which is 115.84% more than your original loan amount ($3,513,743.34)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,066.67 | 20 | 1% | $4,580,762.66 |
| $21,066.67 | 20 | 2% | $4,164,333 |
| $21,066.67 | 20 | 3% | $3,798,549.93 |
| $21,066.67 | 20 | 4% | $3,476,460.48 |
| $21,066.67 | 20 | 5% | $3,192,133.26 |
| $21,066.67 | 20 | 6% | $2,940,501.59 |
| $21,066.67 | 20 | 7% | $2,717,231.47 |
| $21,066.67 | 20 | 8% | $2,518,610.41 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,066.67 | 25 | 1% | $5,589,866.39 |
| $21,066.67 | 25 | 2% | $4,970,260.95 |
| $21,066.67 | 25 | 3% | $4,442,463.95 |
| $21,066.67 | 25 | 4% | $3,991,132.31 |
| $21,066.67 | 25 | 5% | $3,603,664.99 |
| $21,066.67 | 25 | 6% | $3,269,691.27 |
| $21,066.67 | 25 | 7% | $2,980,657.43 |
| $21,066.67 | 25 | 8% | $2,729,492.61 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,066.67 | 30 | 1% | $6,549,775.55 |
| $21,066.67 | 30 | 2% | $5,699,555.41 |
| $21,066.67 | 30 | 3% | $4,996,789.64 |
| $21,066.67 | 30 | 4% | $4,412,650.13 |
| $21,066.67 | 30 | 5% | $3,924,332.73 |
| $21,066.67 | 30 | 6% | $3,513,743.34 |
| $21,066.67 | 30 | 7% | $3,166,479.43 |
| $21,066.67 | 30 | 8% | $2,871,038.94 |