Monir and Jackie carry quite a lot of debt, despite their high income. Both lease their cars at a combined cost of $2,300 a month. Their recently-built house carries a $1,000,000 mortgage at a rate of 2.4%, 5-year term, with monthly payments over 25 years. Theirs was not a conventional mortgage, but a high-ratio mortgage at a 90% loan-to-value ratio. Other monthly debt charges (line of credit, credit card, etc.) amount to $5,000 a month. Municipal taxes and heating costs amount to $900 a month. They were First Time Home Buyers.

Part 1: The couple chose to add the CMHC mortgage loan insurance to their $1,000,000 fixed rate mortgage. However, had they paid the insurance off up-front, how much total interest would they have saved over 25 years?

Mortgage Insurance Calculation

TABLE B

2020 Federal Basic Personal Amount and Quebec Basic Personal Amount
2020 Federal Basic Personal Amount	2020 Quebec Basic Personal Amount
$13,229	$15,532
Tax rate 15%	Tax rate 15%

TABLE C

Tax-Free Savings Account (TFSA): Annual Limits
Years	Annual Limit	Years	Annual Limit
Year started 2009 - 2012	$5,000/year	2016 - 2018	$5,500/year
2013 - 2014	$5,500/year	2019 - 2020	$6,000/year
2015	$10,000/year	2021	$6,000/year

TABLE D

Registered Retirement Savings Plan (RRSP): Annual Limits Formula for RRSP contribution limit: 18% of your previous year's earned income less your previous year's pension adjustment to an annual maximum.
Year	Annual maximum contribution limit
2018	$26,230
2019	$26,500
2020	$27,230
2021	$27,830