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

question 28

Essay

Peter and Mary make a $25 000 down payment on a $400 000 home.
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 insurance premium?
Illustrate the calculation on the loan insurance premium that Peter and Mary have to pay.

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Definitions:

Sales-oriented

Pertains to a business approach focused primarily on sales volume as the chief measure of success, often at the expense of customer satisfaction or product quality.

Lifetime Profitability

Refers to the total net profit a company expects to earn over the entirety of its business relationship with a customer.

Relationship Value

The perceived worth or benefits derived from maintaining a long-term relationship with a customer or business partner.

Lifetime Profitability

The total net profit a company expects to earn over the duration of its entire business relationship with a customer.