Use this calculator to see the home you can afford if you make $950,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,508,823.87
Okay, so let's imagine you make $950,000 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 $180,500 a year, or $15,041.67 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 ($79,166.67), you can only spend up to $25,333.33 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 $79,166.67. With 6% interest, you will receive a loan of $3.9M (without down payment).
Your monthly interest payment remains the same $25,333.33
You will make total 300 installments
You will have to pay total amount of $7,600,000, which is 93.29% more than your original loan amount ($3,931,907.22)
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 $25,333.33
You will make total 360 installments
You will have to pay total amount of $9,120,000, which is 115.84% more than your original loan amount ($4,225,387.56)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,333.33 | 20 | 1% | $5,508,512.05 |
| $25,333.33 | 20 | 2% | $5,007,742.22 |
| $25,333.33 | 20 | 3% | $4,567,876.5 |
| $25,333.33 | 20 | 4% | $4,180,553.74 |
| $25,333.33 | 20 | 5% | $3,838,641.26 |
| $25,333.33 | 20 | 6% | $3,536,046.22 |
| $25,333.33 | 20 | 7% | $3,267,556.83 |
| $25,333.33 | 20 | 8% | $3,028,708.72 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,333.33 | 25 | 1% | $6,721,991.23 |
| $25,333.33 | 25 | 2% | $5,976,896.08 |
| $25,333.33 | 25 | 3% | $5,342,203.48 |
| $25,333.33 | 25 | 4% | $4,799,462.9 |
| $25,333.33 | 25 | 5% | $4,333,521.19 |
| $25,333.33 | 25 | 6% | $3,931,907.22 |
| $25,333.33 | 25 | 7% | $3,584,334.89 |
| $25,333.33 | 25 | 8% | $3,282,301.24 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,333.33 | 30 | 1% | $7,876,312.37 |
| $25,333.33 | 30 | 2% | $6,853,895.75 |
| $25,333.33 | 30 | 3% | $6,008,797.66 |
| $25,333.33 | 30 | 4% | $5,306,351.42 |
| $25,333.33 | 30 | 5% | $4,719,134.3 |
| $25,333.33 | 30 | 6% | $4,225,387.56 |
| $25,333.33 | 30 | 7% | $3,807,791.72 |
| $25,333.33 | 30 | 8% | $3,452,515.18 |