Use this calculator to see the home you can afford if you make $970,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,561,641.21
Okay, so let's imagine you make $970,000 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 $184,300 a year, or $15,358.33 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 ($80,833.33), you can only spend up to $25,866.67 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 $80,833.33. With 6% interest, you will receive a loan of $4.0M (without down payment).
Your monthly interest payment remains the same $25,866.67
You will make total 300 installments
You will have to pay total amount of $7,760,000, which is 93.29% more than your original loan amount ($4,014,684.22)
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 $25,866.67
You will make total 360 installments
You will have to pay total amount of $9,312,000, which is 115.84% more than your original loan amount ($4,314,343.09)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,866.67 | 20 | 1% | $5,624,480.73 |
| $25,866.67 | 20 | 2% | $5,113,168.37 |
| $25,866.67 | 20 | 3% | $4,664,042.32 |
| $25,866.67 | 20 | 4% | $4,268,565.4 |
| $25,866.67 | 20 | 5% | $3,919,454.76 |
| $25,866.67 | 20 | 6% | $3,610,489.29 |
| $25,866.67 | 20 | 7% | $3,336,347.5 |
| $25,866.67 | 20 | 8% | $3,092,471.01 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,866.67 | 25 | 1% | $6,863,506.84 |
| $25,866.67 | 25 | 2% | $6,102,725.47 |
| $25,866.67 | 25 | 3% | $5,454,670.93 |
| $25,866.67 | 25 | 4% | $4,900,504.23 |
| $25,866.67 | 25 | 5% | $4,424,753.22 |
| $25,866.67 | 25 | 6% | $4,014,684.22 |
| $25,866.67 | 25 | 7% | $3,659,794.57 |
| $25,866.67 | 25 | 8% | $3,351,402.32 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $25,866.67 | 30 | 1% | $8,042,129.47 |
| $25,866.67 | 30 | 2% | $6,998,188.29 |
| $25,866.67 | 30 | 3% | $6,135,298.67 |
| $25,866.67 | 30 | 4% | $5,418,064.09 |
| $25,866.67 | 30 | 5% | $4,818,484.49 |
| $25,866.67 | 30 | 6% | $4,314,343.09 |
| $25,866.67 | 30 | 7% | $3,887,955.76 |
| $25,866.67 | 30 | 8% | $3,525,199.71 |