Munawar Is a First Time Buyer and Bought a Brand

question 122

Multiple Choice

Munawar is a first time buyer and bought a brand new townhouse in Oshawa for $212 000. He has saved enough to make a 5% down payment and will have to pay mortgage loan insurance at 2.75% of the mortgage balance. Munawar wants the insurance premium added to the maximum allowable loan balance. Determine his maximum initial mortgage balance.

• A) $5538.50
• B) $201 400
• C) $206 938.50
• D) $212 000
• E) $212 477