Use this calculator to see the home you can afford if you make $880,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,323,963.16
Okay, so let's imagine you make $880,000 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 $167,200 a year, or $13,933.33 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 ($73,333.33), you can only spend up to $23,466.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.3M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $73,333.33. With 6% interest, you will receive a loan of $3.6M (without down payment).
Your monthly interest payment remains the same $23,466.67
You will make total 300 installments
You will have to pay total amount of $7,040,000, which is 93.29% more than your original loan amount ($3,642,187.74)
For 6% interest, you will receive a loan of $3.9M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $23,466.67
You will make total 360 installments
You will have to pay total amount of $8,448,000, which is 115.84% more than your original loan amount ($3,914,043.22)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $23,466.67 | 20 | 1% | $5,102,621.69 |
| $23,466.67 | 20 | 2% | $4,638,750.68 |
| $23,466.67 | 20 | 3% | $4,231,296.12 |
| $23,466.67 | 20 | 4% | $3,872,512.94 |
| $23,466.67 | 20 | 5% | $3,555,794.01 |
| $23,466.67 | 20 | 6% | $3,275,495.44 |
| $23,466.67 | 20 | 7% | $3,026,789.49 |
| $23,466.67 | 20 | 8% | $2,805,540.71 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $23,466.67 | 25 | 1% | $6,226,686.62 |
| $23,466.67 | 25 | 2% | $5,536,493.21 |
| $23,466.67 | 25 | 3% | $4,948,567.44 |
| $23,466.67 | 25 | 4% | $4,445,818.27 |
| $23,466.67 | 25 | 5% | $4,014,209.1 |
| $23,466.67 | 25 | 6% | $3,642,187.74 |
| $23,466.67 | 25 | 7% | $3,320,226 |
| $23,466.67 | 25 | 8% | $3,040,447.46 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $23,466.67 | 30 | 1% | $7,295,952.51 |
| $23,466.67 | 30 | 2% | $6,348,871.85 |
| $23,466.67 | 30 | 3% | $5,566,044.15 |
| $23,466.67 | 30 | 4% | $4,915,357.11 |
| $23,466.67 | 30 | 5% | $4,371,408.61 |
| $23,466.67 | 30 | 6% | $3,914,043.22 |
| $23,466.67 | 30 | 7% | $3,527,217.59 |
| $23,466.67 | 30 | 8% | $3,198,119.33 |