Use this calculator to see the home you can afford if you make $830,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,191,919.8
Okay, so let's imagine you make $830,000 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 $157,700 a year, or $13,141.67 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 ($69,166.67), you can only spend up to $22,133.33 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 $69,166.67. With 6% interest, you will receive a loan of $3.4M (without down payment).
Your monthly interest payment remains the same $22,133.33
You will make total 300 installments
You will have to pay total amount of $6,640,000, which is 93.29% more than your original loan amount ($3,435,245.26)
For 6% interest, you will receive a loan of $3.7M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $22,133.33
You will make total 360 installments
You will have to pay total amount of $7,968,000, which is 115.84% more than your original loan amount ($3,691,654.4)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,133.33 | 20 | 1% | $4,812,700 |
| $22,133.33 | 20 | 2% | $4,375,185.3 |
| $22,133.33 | 20 | 3% | $3,990,881.57 |
| $22,133.33 | 20 | 4% | $3,652,483.8 |
| $22,133.33 | 20 | 5% | $3,353,760.26 |
| $22,133.33 | 20 | 6% | $3,089,387.75 |
| $22,133.33 | 20 | 7% | $2,854,812.81 |
| $22,133.33 | 20 | 8% | $2,646,134.99 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,133.33 | 25 | 1% | $5,872,897.6 |
| $22,133.33 | 25 | 2% | $5,221,919.73 |
| $22,133.33 | 25 | 3% | $4,667,398.83 |
| $22,133.33 | 25 | 4% | $4,193,214.96 |
| $22,133.33 | 25 | 5% | $3,786,129.04 |
| $22,133.33 | 25 | 6% | $3,435,245.26 |
| $22,133.33 | 25 | 7% | $3,131,576.79 |
| $22,133.33 | 25 | 8% | $2,867,694.77 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,133.33 | 30 | 1% | $6,881,409.75 |
| $22,133.33 | 30 | 2% | $5,988,140.5 |
| $22,133.33 | 30 | 3% | $5,249,791.64 |
| $22,133.33 | 30 | 4% | $4,636,075.46 |
| $22,133.33 | 30 | 5% | $4,123,033.12 |
| $22,133.33 | 30 | 6% | $3,691,654.4 |
| $22,133.33 | 30 | 7% | $3,326,807.5 |
| $22,133.33 | 30 | 8% | $3,016,408 |