Sumnit is a first-time home buyer. After viewing many homes, he has decided on a $339,000 two-bedroom house in an established suburb.

a. What is the minimum down payment he will be required to provide in Canada?

b. If Sumnit makes the minimum required down payment, how large will his monthly payments be given the bank has offered him a fixed rate of 3.15% compounded semi-annually over a 25-year amortization period?

AppendixLO1