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

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Definitions:

Defined-Benefit Retirement Plan

A type of pension plan where an employer promises a specified retirement benefit to employees based on a formula, typically involving years of service and salary history.

Pension Benefit Guarantee Corporation

A U.S. federal agency that protects the pension benefits in private-sector defined benefit plans if the company fails to meet its pension obligations.

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Unpaid Leave

A period of time that an employee is allowed to be away from work without pay, often for personal, family, or medical reasons.