Use this calculator to see the home you can afford if you make $980,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $2,588,049.88
Okay, so let's imagine you make $980,000 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 $186,200 a year, or $15,516.67 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 ($81,666.67), you can only spend up to $26,133.33 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 $81,666.67. With 6% interest, you will receive a loan of $4.1M (without down payment).
Your monthly interest payment remains the same $26,133.33
You will make total 300 installments
You will have to pay total amount of $7,840,000, which is 93.29% more than your original loan amount ($4,056,072.71)
For 6% interest, you will receive a loan of $4.4M (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $26,133.33
You will make total 360 installments
You will have to pay total amount of $9,408,000, which is 115.84% more than your original loan amount ($4,358,820.86)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $26,133.33 | 20 | 1% | $5,682,465.07 |
| $26,133.33 | 20 | 2% | $5,165,881.44 |
| $26,133.33 | 20 | 3% | $4,712,125.23 |
| $26,133.33 | 20 | 4% | $4,312,571.23 |
| $26,133.33 | 20 | 5% | $3,959,861.52 |
| $26,133.33 | 20 | 6% | $3,647,710.83 |
| $26,133.33 | 20 | 7% | $3,370,742.84 |
| $26,133.33 | 20 | 8% | $3,124,352.16 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $26,133.33 | 25 | 1% | $6,934,264.64 |
| $26,133.33 | 25 | 2% | $6,165,640.16 |
| $26,133.33 | 25 | 3% | $5,510,904.65 |
| $26,133.33 | 25 | 4% | $4,951,024.89 |
| $26,133.33 | 25 | 5% | $4,470,369.23 |
| $26,133.33 | 25 | 6% | $4,056,072.71 |
| $26,133.33 | 25 | 7% | $3,697,524.41 |
| $26,133.33 | 25 | 8% | $3,385,952.86 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $26,133.33 | 30 | 1% | $8,125,038.02 |
| $26,133.33 | 30 | 2% | $7,070,334.56 |
| $26,133.33 | 30 | 3% | $6,198,549.17 |
| $26,133.33 | 30 | 4% | $5,473,920.42 |
| $26,133.33 | 30 | 5% | $4,868,159.59 |
| $26,133.33 | 30 | 6% | $4,358,820.86 |
| $26,133.33 | 30 | 7% | $3,928,037.78 |
| $26,133.33 | 30 | 8% | $3,561,541.98 |