Use this calculator to see the home you can afford if you make $840,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,218,328.47
Okay, so let's imagine you make $840,000 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 $159,600 a year, or $13,300 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 ($70,000), you can only spend up to $22,400 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 $70,000. With 6% interest, you will receive a loan of $3.5M (without down payment).
Your monthly interest payment remains the same $22,400
You will make total 300 installments
You will have to pay total amount of $6,720,000, which is 93.29% more than your original loan amount ($3,476,633.75)
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 $22,400
You will make total 360 installments
You will have to pay total amount of $8,064,000, which is 115.84% more than your original loan amount ($3,736,132.16)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,400 | 20 | 1% | $4,870,684.34 |
| $22,400 | 20 | 2% | $4,427,898.38 |
| $22,400 | 20 | 3% | $4,038,964.48 |
| $22,400 | 20 | 4% | $3,696,489.62 |
| $22,400 | 20 | 5% | $3,394,167.01 |
| $22,400 | 20 | 6% | $3,126,609.29 |
| $22,400 | 20 | 7% | $2,889,208.15 |
| $22,400 | 20 | 8% | $2,678,016.13 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,400 | 25 | 1% | $5,943,655.41 |
| $22,400 | 25 | 2% | $5,284,834.42 |
| $22,400 | 25 | 3% | $4,723,632.55 |
| $22,400 | 25 | 4% | $4,243,735.62 |
| $22,400 | 25 | 5% | $3,831,745.05 |
| $22,400 | 25 | 6% | $3,476,633.75 |
| $22,400 | 25 | 7% | $3,169,306.64 |
| $22,400 | 25 | 8% | $2,902,245.31 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,400 | 30 | 1% | $6,964,318.31 |
| $22,400 | 30 | 2% | $6,060,286.77 |
| $22,400 | 30 | 3% | $5,313,042.15 |
| $22,400 | 30 | 4% | $4,691,931.79 |
| $22,400 | 30 | 5% | $4,172,708.22 |
| $22,400 | 30 | 6% | $3,736,132.16 |
| $22,400 | 30 | 7% | $3,366,889.52 |
| $22,400 | 30 | 8% | $3,052,750.27 |