Use this calculator to see the home you can afford if you make $820,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,165,511.13
Okay, so let's imagine you make $820,000 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 $155,800 a year, or $12,983.33 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 ($68,333.33), you can only spend up to $21,866.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.1M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $68,333.33. With 6% interest, you will receive a loan of $3.4M (without down payment).
Your monthly interest payment remains the same $21,866.67
You will make total 300 installments
You will have to pay total amount of $6,560,000, which is 93.29% more than your original loan amount ($3,393,856.76)
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 $21,866.67
You will make total 360 installments
You will have to pay total amount of $7,872,000, which is 115.84% more than your original loan amount ($3,647,176.63)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,866.67 | 20 | 1% | $4,754,715.67 |
| $21,866.67 | 20 | 2% | $4,322,472.23 |
| $21,866.67 | 20 | 3% | $3,942,798.66 |
| $21,866.67 | 20 | 4% | $3,608,477.97 |
| $21,866.67 | 20 | 5% | $3,313,353.51 |
| $21,866.67 | 20 | 6% | $3,052,166.21 |
| $21,866.67 | 20 | 7% | $2,820,417.48 |
| $21,866.67 | 20 | 8% | $2,614,253.85 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,866.67 | 25 | 1% | $5,802,139.8 |
| $21,866.67 | 25 | 2% | $5,159,005.03 |
| $21,866.67 | 25 | 3% | $4,611,165.11 |
| $21,866.67 | 25 | 4% | $4,142,694.29 |
| $21,866.67 | 25 | 5% | $3,740,513.03 |
| $21,866.67 | 25 | 6% | $3,393,856.76 |
| $21,866.67 | 25 | 7% | $3,093,846.95 |
| $21,866.67 | 25 | 8% | $2,833,144.23 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $21,866.67 | 30 | 1% | $6,798,501.2 |
| $21,866.67 | 30 | 2% | $5,915,994.23 |
| $21,866.67 | 30 | 3% | $5,186,541.14 |
| $21,866.67 | 30 | 4% | $4,580,219.12 |
| $21,866.67 | 30 | 5% | $4,073,358.03 |
| $21,866.67 | 30 | 6% | $3,647,176.63 |
| $21,866.67 | 30 | 7% | $3,286,725.49 |
| $21,866.67 | 30 | 8% | $2,980,065.74 |