Use this calculator to see the home you can afford if you make $940,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,482,415.19
Okay, so let's imagine you make $940,000 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 $178,600 a year, or $14,883.33 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 ($78,333.33), you can only spend up to $25,066.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.5M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $78,333.33. With 6% interest, you will receive a loan of $3.9M (without down payment).
Your monthly interest payment remains the same $25,066.67
You will make total 300 installments
You will have to pay total amount of $7,520,000, which is 93.29% more than your original loan amount ($3,890,518.72)
For 6% interest, you will receive a loan of $4.2M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $25,066.67
You will make total 360 installments
You will have to pay total amount of $9,024,000, which is 115.84% more than your original loan amount ($4,180,909.8)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,066.67 | 20 | 1% | $5,450,527.72 |
| $25,066.67 | 20 | 2% | $4,955,029.14 |
| $25,066.67 | 20 | 3% | $4,519,793.59 |
| $25,066.67 | 20 | 4% | $4,136,547.91 |
| $25,066.67 | 20 | 5% | $3,798,234.51 |
| $25,066.67 | 20 | 6% | $3,498,824.68 |
| $25,066.67 | 20 | 7% | $3,233,161.5 |
| $25,066.67 | 20 | 8% | $2,996,827.58 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,066.67 | 25 | 1% | $6,651,233.43 |
| $25,066.67 | 25 | 2% | $5,913,981.38 |
| $25,066.67 | 25 | 3% | $5,285,969.76 |
| $25,066.67 | 25 | 4% | $4,748,942.24 |
| $25,066.67 | 25 | 5% | $4,287,905.18 |
| $25,066.67 | 25 | 6% | $3,890,518.72 |
| $25,066.67 | 25 | 7% | $3,546,605.04 |
| $25,066.67 | 25 | 8% | $3,247,750.7 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,066.67 | 30 | 1% | $7,793,403.82 |
| $25,066.67 | 30 | 2% | $6,781,749.48 |
| $25,066.67 | 30 | 3% | $5,945,547.16 |
| $25,066.67 | 30 | 4% | $5,250,495.09 |
| $25,066.67 | 30 | 5% | $4,669,459.2 |
| $25,066.67 | 30 | 6% | $4,180,909.8 |
| $25,066.67 | 30 | 7% | $3,767,709.7 |
| $25,066.67 | 30 | 8% | $3,416,172.92 |