Use this calculator to see the home you can afford if you make $850,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,244,737.14
Okay, so let's imagine you make $850,000 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 $161,500 a year, or $13,458.33 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 ($70,833.33), you can only spend up to $22,666.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.2M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $70,833.33. With 6% interest, you will receive a loan of $3.5M (without down payment).
Your monthly interest payment remains the same $22,666.67
You will make total 300 installments
You will have to pay total amount of $6,800,000, which is 93.29% more than your original loan amount ($3,518,022.25)
For 6% interest, you will receive a loan of $3.8M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $22,666.67
You will make total 360 installments
You will have to pay total amount of $8,160,000, which is 115.84% more than your original loan amount ($3,780,609.93)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,666.67 | 20 | 1% | $4,928,668.68 |
| $22,666.67 | 20 | 2% | $4,480,611.46 |
| $22,666.67 | 20 | 3% | $4,087,047.39 |
| $22,666.67 | 20 | 4% | $3,740,495.45 |
| $22,666.67 | 20 | 5% | $3,434,573.76 |
| $22,666.67 | 20 | 6% | $3,163,830.82 |
| $22,666.67 | 20 | 7% | $2,923,603.48 |
| $22,666.67 | 20 | 8% | $2,709,897.28 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,666.67 | 25 | 1% | $6,014,413.21 |
| $22,666.67 | 25 | 2% | $5,347,749.12 |
| $22,666.67 | 25 | 3% | $4,779,866.28 |
| $22,666.67 | 25 | 4% | $4,294,256.28 |
| $22,666.67 | 25 | 5% | $3,877,361.07 |
| $22,666.67 | 25 | 6% | $3,518,022.25 |
| $22,666.67 | 25 | 7% | $3,207,036.48 |
| $22,666.67 | 25 | 8% | $2,936,795.85 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $22,666.67 | 30 | 1% | $7,047,226.86 |
| $22,666.67 | 30 | 2% | $6,132,433.04 |
| $22,666.67 | 30 | 3% | $5,376,292.65 |
| $22,666.67 | 30 | 4% | $4,747,788.12 |
| $22,666.67 | 30 | 5% | $4,222,383.32 |
| $22,666.67 | 30 | 6% | $3,780,609.93 |
| $22,666.67 | 30 | 7% | $3,406,971.54 |
| $22,666.67 | 30 | 8% | $3,089,092.53 |