John and Sue want to spend no more that 40 percent of their gross income on housing.John makes $80,000 and Sue makes $100,000. Property taxes and condo fees total $3,000 per month. They will finance their purchase with a 5-year, 5% fixed-rate mortgage loan, with a 25-year amortization period.They have saved up $35,000 to use as a down payment for a condo.CMHC premiums on mortgage insurance are given in the table below.

CMHC Premiums:

Loan to Value

Premium

Up to 65%: 1%

From 65.01% to 75%: 2%

From 75.01 to 85%: 3%

From 85% to 95%: 4%

How much can John and Sue spend on their condo (price of the condo)?