Anusha and Naveen are planning to buy their first home. They have saved $30,000 and will withdraw the maximum from their RRSPs under the Home Buyers Plan. They will pay the cost of CMHC mortgage loan insurance separately. They estimate closing costs at $8,200 and will take a 25-year mortgage at a rate of 3.2%, compounded semi-annually, for a 3-year term. They will pay the mortgage monthly. The home they wish to buy costs $450,000.

Part a

How much of a mortgage loan will the couple need?

Part b

How much will CMHC loan insurance cost?

Part c

What will be the couples monthly mortgage payment and loan balance at the end of their term?