Use this calculator to see the home you can afford if you make $900,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,376,780.51
Okay, so let's imagine you make $900,000 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 $171,000 a year, or $14,250 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 ($75,000), you can only spend up to $24,000 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 $75,000. With 6% interest, you will receive a loan of $3.7M (without down payment).
Your monthly interest payment remains the same $24,000
You will make total 300 installments
You will have to pay total amount of $7,200,000, which is 93.29% more than your original loan amount ($3,724,964.74)
For 6% interest, you will receive a loan of $4.0M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $24,000
You will make total 360 installments
You will have to pay total amount of $8,640,000, which is 115.84% more than your original loan amount ($4,002,998.75)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $24,000 | 20 | 1% | $5,218,590.37 |
| $24,000 | 20 | 2% | $4,744,176.84 |
| $24,000 | 20 | 3% | $4,327,461.95 |
| $24,000 | 20 | 4% | $3,960,524.6 |
| $24,000 | 20 | 5% | $3,636,607.51 |
| $24,000 | 20 | 6% | $3,349,938.52 |
| $24,000 | 20 | 7% | $3,095,580.16 |
| $24,000 | 20 | 8% | $2,869,303 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $24,000 | 25 | 1% | $6,368,202.22 |
| $24,000 | 25 | 2% | $5,662,322.6 |
| $24,000 | 25 | 3% | $5,061,034.88 |
| $24,000 | 25 | 4% | $4,546,859.59 |
| $24,000 | 25 | 5% | $4,105,441.13 |
| $24,000 | 25 | 6% | $3,724,964.74 |
| $24,000 | 25 | 7% | $3,395,685.68 |
| $24,000 | 25 | 8% | $3,109,548.54 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $24,000 | 30 | 1% | $7,461,769.61 |
| $24,000 | 30 | 2% | $6,493,164.4 |
| $24,000 | 30 | 3% | $5,692,545.16 |
| $24,000 | 30 | 4% | $5,027,069.77 |
| $24,000 | 30 | 5% | $4,470,758.81 |
| $24,000 | 30 | 6% | $4,002,998.75 |
| $24,000 | 30 | 7% | $3,607,381.63 |
| $24,000 | 30 | 8% | $3,270,803.86 |