Mertyl is interested in buying a house worth $335 000 and has a down payment of $40 000.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.
A)$5900.00
B)$6700.00
C)$5162.50
D)$5862.50

Question

Quizplus · Accepted Answer

The loan to value ratio is (335000-40000)/335000=89.25%. The CMHC insurance premium is 2.00% of the loan amount, which is $5862.50.

Mertyl Is Interested in Buying a House Worth $335 000