Use this calculator to see the home you can afford if you make $960,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,535,232.54
Okay, so let's imagine you make $960,000 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 $182,400 a year, or $15,200 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 ($80,000), you can only spend up to $25,600 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $3.6M (without down payment)
If you extend the loan term to 25 years.
With monthly income of $80,000. With 6% interest, you will receive a loan of $4.0M (without down payment).
Your monthly interest payment remains the same $25,600
You will make total 300 installments
You will have to pay total amount of $7,680,000, which is 93.29% more than your original loan amount ($3,973,295.72)
For 6% interest, you will receive a loan of $4.3M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $25,600
You will make total 360 installments
You will have to pay total amount of $9,216,000, which is 115.84% more than your original loan amount ($4,269,865.33)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,600 | 20 | 1% | $5,566,496.39 |
| $25,600 | 20 | 2% | $5,060,455.29 |
| $25,600 | 20 | 3% | $4,615,959.41 |
| $25,600 | 20 | 4% | $4,224,559.57 |
| $25,600 | 20 | 5% | $3,879,048.01 |
| $25,600 | 20 | 6% | $3,573,267.76 |
| $25,600 | 20 | 7% | $3,301,952.17 |
| $25,600 | 20 | 8% | $3,060,589.87 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,600 | 25 | 1% | $6,792,749.04 |
| $25,600 | 25 | 2% | $6,039,810.77 |
| $25,600 | 25 | 3% | $5,398,437.21 |
| $25,600 | 25 | 4% | $4,849,983.56 |
| $25,600 | 25 | 5% | $4,379,137.2 |
| $25,600 | 25 | 6% | $3,973,295.72 |
| $25,600 | 25 | 7% | $3,622,064.73 |
| $25,600 | 25 | 8% | $3,316,851.78 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,600 | 30 | 1% | $7,959,220.92 |
| $25,600 | 30 | 2% | $6,926,042.02 |
| $25,600 | 30 | 3% | $6,072,048.17 |
| $25,600 | 30 | 4% | $5,362,207.76 |
| $25,600 | 30 | 5% | $4,768,809.4 |
| $25,600 | 30 | 6% | $4,269,865.33 |
| $25,600 | 30 | 7% | $3,847,873.74 |
| $25,600 | 30 | 8% | $3,488,857.45 |