Use this calculator to see the home you can afford if you make $920,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,429,597.85
Okay, so let's imagine you make $920,000 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 $174,800 a year, or $14,566.67 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 ($76,666.67), you can only spend up to $24,533.33 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.4M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $76,666.67. With 6% interest, you will receive a loan of $3.8M (without down payment).
Your monthly interest payment remains the same $24,533.33
You will make total 300 installments
You will have to pay total amount of $7,360,000, which is 93.29% more than your original loan amount ($3,807,741.73)
For 6% interest, you will receive a loan of $4.1M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $24,533.33
You will make total 360 installments
You will have to pay total amount of $8,832,000, which is 115.84% more than your original loan amount ($4,091,954.27)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $24,533.33 | 20 | 1% | $5,334,559.04 |
| $24,533.33 | 20 | 2% | $4,849,602.99 |
| $24,533.33 | 20 | 3% | $4,423,627.77 |
| $24,533.33 | 20 | 4% | $4,048,536.26 |
| $24,533.33 | 20 | 5% | $3,717,421.01 |
| $24,533.33 | 20 | 6% | $3,424,381.6 |
| $24,533.33 | 20 | 7% | $3,164,370.83 |
| $24,533.33 | 20 | 8% | $2,933,065.29 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $24,533.33 | 25 | 1% | $6,509,717.83 |
| $24,533.33 | 25 | 2% | $5,788,151.99 |
| $24,533.33 | 25 | 3% | $5,173,502.32 |
| $24,533.33 | 25 | 4% | $4,647,900.92 |
| $24,533.33 | 25 | 5% | $4,196,673.15 |
| $24,533.33 | 25 | 6% | $3,807,741.73 |
| $24,533.33 | 25 | 7% | $3,471,145.36 |
| $24,533.33 | 25 | 8% | $3,178,649.62 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $24,533.33 | 30 | 1% | $7,627,586.72 |
| $24,533.33 | 30 | 2% | $6,637,456.94 |
| $24,533.33 | 30 | 3% | $5,819,046.16 |
| $24,533.33 | 30 | 4% | $5,138,782.43 |
| $24,533.33 | 30 | 5% | $4,570,109 |
| $24,533.33 | 30 | 6% | $4,091,954.27 |
| $24,533.33 | 30 | 7% | $3,687,545.67 |
| $24,533.33 | 30 | 8% | $3,343,488.39 |