Macy has a credit score of 700. She is looking to make an offer on a condo for $475,000 in two weeks on March 12, 2021. She cannot afford a conventional mortgage and has savings of 10% to use as a down payment. For Macy to get a mortgage, she requires mortgage loan insurance to help protect her lender Royal Bank of Canada (RSCagainst a potential mortgage default. Macy needs to meet the following requirements under Canada Mortgage and Housing Corporation (CMHC to qualify for mortgage loan insurance: The maximum amortization for insured mortgages 25 years The minimum down payment is 5% on a home valued at $500,000 and under. There are several other requirements to be approved for default Insurance under CMHC coverage. These requirements changed on July 1, 2020 in response to the economic downturn. To be eligible for CMHC default Insurance coverage after ulys, borrowers must: . Have a Gross Debt Service ratio of less than a Have a Total Debt Service ratio less than Have a credit score of at least 680 *Note that prior to July 1, 2020, the GOS/TOS ratios were 39/44% respectively it all borrowers had a credit score of 680 or higher, however if one borrower failed to meet the 68 credit score, the ratio decreased to 35/42. Default Mortgage Insurance rates: LEE a) Macy going to the Royal Bank of Canada (3) to discuss her potential mortgage with them. RBC will be calculating Macy's Total Debt Service (TDS) ratio. Macy's gross annual income is $129,000. The property that she is looking to purchase would result in monthly heating costs of 5475, condo fees of $1,900 per year, while he annual property taxes would be 54.750. Her only debt is a carioan of 5875 per month Calculate her Tos ratio using a monthly mortgage payment of $2.500 (1 marko Calculation: Does Macy meet the TDs ratio requirement for CMC defaut insurance? (Underline and highlight your response mark Yes or No Calculate Macy's mortage default Insurance using the above table Default Mortgage Insurance rates? (5 mark Calculation: Macy has a credit score of 700. She is looking to make an offer on a condo for $475,000 in two weeks on March 12, 2021. She cannot afford a conventional mortgage and has savings of 10% to use as a down payment. For Macy to get a mortgage, she requires mortgage loan insurance to help protect her lender Royal Bank of Canada (RSCagainst a potential mortgage default. Macy needs to meet the following requirements under Canada Mortgage and Housing Corporation (CMHC to qualify for mortgage loan insurance: The maximum amortization for insured mortgages 25 years The minimum down payment is 5% on a home valued at $500,000 and under. There are several other requirements to be approved for default Insurance under CMHC coverage. These requirements changed on July 1, 2020 in response to the economic downturn. To be eligible for CMHC default Insurance coverage after ulys, borrowers must: . Have a Gross Debt Service ratio of less than a Have a Total Debt Service ratio less than Have a credit score of at least 680 *Note that prior to July 1, 2020, the GOS/TOS ratios were 39/44% respectively it all borrowers had a credit score of 680 or higher, however if one borrower failed to meet the 68 credit score, the ratio decreased to 35/42. Default Mortgage Insurance rates: LEE a) Macy going to the Royal Bank of Canada (3) to discuss her potential mortgage with them. RBC will be calculating Macy's Total Debt Service (TDS) ratio. Macy's gross annual income is $129,000. The property that she is looking to purchase would result in monthly heating costs of 5475, condo fees of $1,900 per year, while he annual property taxes would be 54.750. Her only debt is a carioan of 5875 per month Calculate her Tos ratio using a monthly mortgage payment of $2.500 (1 marko Calculation: Does Macy meet the TDs ratio requirement for CMC defaut insurance? (Underline and highlight your response mark Yes or No Calculate Macy's mortage default Insurance using the above table Default Mortgage Insurance rates? (5 mark Calculation
