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, 32% for the GDS ratio, and 40% for the TDS ratio. Rounded to the nearest $100, what is the maximum 5- 25-year mortgage loan for which they can qualify if their gross monthly income is $5000 and their payments on personal debt amount to $600 per month? Assume monthly heating costs of $150 and property taxes of $200 per month. Current mortgage rates are 6.6% compounded semi-annually. * O $155,300 O $345,400 O $215,900 O All of the answer choices are wrong.
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, 32% for the GDS ratio, and 40% for the TDS ratio. Rounded to the nearest $100, what is the maximum 5- 25-year mortgage loan for which they can qualify if their gross monthly income is $5000 and their payments on personal debt amount to $600 per month? Assume monthly heating costs of $150 and property taxes of $200 per month. Current mortgage rates are 6.6% compounded semi-annually. * O $155,300 O $345,400 O $215,900 O All of the answer choices are wrong.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:5- 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, 32% for the
GDS ratio, and 40% for the TDS ratio. Rounded to the nearest $100, what is the maximum
25-year mortgage loan for which they can qualify if their gross monthly income is $5000 and
their payments on personal debt amount to $600 per month? Assume monthly heating costs
of $150 and property taxes of $200 per month. Current mortgage rates are 6.6% compounded
semi-annually. *
O $155,300
O $345,400
O $215,900
O All of the answer choices are wrong.
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