Use this calculator to see the home you can afford if you make $800,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,112,693.78
Okay, so let's imagine you make $800,000 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 $152,000 a year, or $12,666.67 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 ($66,666.67), you can only spend up to $21,333.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.0M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $66,666.67. With 6% interest, you will receive a loan of $3.3M (without down payment).
Your monthly interest payment remains the same $21,333.33
You will make total 300 installments
You will have to pay total amount of $6,400,000, which is 93.29% more than your original loan amount ($3,311,079.77)
For 6% interest, you will receive a loan of $3.6M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $21,333.33
You will make total 360 installments
You will have to pay total amount of $7,680,000, which is 115.84% more than your original loan amount ($3,558,221.11)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,333.33 | 20 | 1% | $4,638,746.99 |
| $21,333.33 | 20 | 2% | $4,217,046.08 |
| $21,333.33 | 20 | 3% | $3,846,632.84 |
| $21,333.33 | 20 | 4% | $3,520,466.31 |
| $21,333.33 | 20 | 5% | $3,232,540.01 |
| $21,333.33 | 20 | 6% | $2,977,723.13 |
| $21,333.33 | 20 | 7% | $2,751,626.81 |
| $21,333.33 | 20 | 8% | $2,550,491.56 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,333.33 | 25 | 1% | $5,660,624.2 |
| $21,333.33 | 25 | 2% | $5,033,175.64 |
| $21,333.33 | 25 | 3% | $4,498,697.67 |
| $21,333.33 | 25 | 4% | $4,041,652.97 |
| $21,333.33 | 25 | 5% | $3,649,281 |
| $21,333.33 | 25 | 6% | $3,311,079.77 |
| $21,333.33 | 25 | 7% | $3,018,387.27 |
| $21,333.33 | 25 | 8% | $2,764,043.15 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,333.33 | 30 | 1% | $6,632,684.1 |
| $21,333.33 | 30 | 2% | $5,771,701.69 |
| $21,333.33 | 30 | 3% | $5,060,040.14 |
| $21,333.33 | 30 | 4% | $4,468,506.46 |
| $21,333.33 | 30 | 5% | $3,974,007.83 |
| $21,333.33 | 30 | 6% | $3,558,221.11 |
| $21,333.33 | 30 | 7% | $3,206,561.45 |
| $21,333.33 | 30 | 8% | $2,907,381.21 |