Peter and Mary Make a $25 000 Down Payment on a $400

question 69

Essay

Peter and Mary make a $25 000 down payment on a $400 000 home.
What will be the CMHC insurance premium? CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,1.00 percent;up to 85 percent,1.75 percent;up to 90 percent,2.00 percent;up to 95 percent 2.75 percent.
Illustrate the calculation on the loan insurance premium that Peter and Mary have to pay?

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