You want to buy a property in city of Vancouver and the purchase price is $1,000,000. You will be making a down payment of 30% of the purchase price, and you will be taking a mortgage for the remaining amount from your bank. The bank offers a mortgage at 1.70% APR semi-annual compounding at 5 years fixed rate term. The mortgage requires monthly payment with 30 years of amortization.

(a) What is the monthly mortgage payment amount you will need to pay?

(b) What could happen to the mortgage interest rates in 2022 in general? What could be the impact on the property prices in general?