The Archibalds are eligible for Canada Mortgage and Housing Corporation's Mortgage Loan Insurance. Consequently, their limits are 95% for the loan-to-value ratio, 35% for the GDS ratio, and 42% for the TDS ratio.
a) Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify if their gross monthly income is $5,000 and their payments on personal debt amount to $600 per month? Assume monthly heating costs of $100 and property taxes of $175 per month. Current mortgage rates are 6.6% compounded semi-annually.
b) If they make the minimum down payment, what is the maximum price (rounded to the nearest $100) they can pay for a home? (Assume the purchase price equals the appraised value.)

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The Answer of The Archibalds are eligible for Canada Mortgage and Housing Corporation's Mortgage Loan Insurance. Consequently, their limits are 95% for the loan-to-value ratio, 35% for the GDS ratio, and 42% for the TDS ratio.
a) Rounded to the nearest $100, what is the maximum 25-year mortgage loan for which they can qualify if their gross monthly income is $5,000 and their payments on personal debt amount to $600 per month? Assume monthly heating costs of $100 and property taxes of $175 per month. Current mortgage rates are 6.6% compounded semi-annually.
b) If they make the minimum down payment, what is the maximum price (rounded to the nearest $100) they can pay for a home? (Assume the purchase price equals the appraised value.)

The Archibalds Are Eligible for Canada Mortgage and Housing Corporation's