Malcolm has a down payment of $45 000 on a house valued at $200 000.He might be better off to borrow an additional $5000 on a personal loan to avoid the high ratio insurance premium.

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To avoid high ratio insurance premium, the down payment should be at least 20% of the house value which is $40 000 in this case. Malcolm already has a down payment of $45 000 which is more than 20% of the house value. Therefore, he does not need to borrow an additional $5000 on a personal loan.

Malcolm Has a Down Payment of $45 000 on a House