Q1)

Q2)

Recently, Abella moved from Toulouse (France) to Winnipeg (Canada), and he is interested in buying a house worth $485,000 and has a down payment of $36,000. CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent, 2.40 percent; up to 85 percent, 2.80 percent; up to 90 percent, 3.10 percent; up to 95 percent 4.00 percent. What will be the CMHC mortgage insurance premium? What will be the approximate total amount of the mortgage if the CMHC fee (insurance premium) is included in it? If a lender were willing to offer the total amount to Abella at 4.5% fixed rate amortized over 25 years, how much would his monthly payment be? You have to assume that insurance premium is included in the total amount of mortgage. (Show your calculations) A. Maxime's household income is $3,963. Mortgage payments including taxes, principal, and interest are $1,189. In addition, there are condominium fees of $126 and heating costs of $56 monthly and a car lease of $241. What is his gross debt service ratio? B. A house for sale in Pickering is listed at $710,000 and Mr. Ota Benga manages to win the competitive bid of his dream house with an offer of $885,000. However, the appraisal indicates the value at $695,000. What will be the conventional mortgage loan amount approved by the bank