A client in BC is buying a $750,000 strata unit with a 10% down payment and a 25-year amortization. What CMHC mortgage loan insurance premium applies?
Correct Answer
A) $20,925 (3.10% of the loan)
The loan is $750,000 - $75,000 = $675,000, a 90% loan-to-value ratio. CMHC's rate for 85.01% to 90% LTV is 3.10% of the loan, so the premium is 3.10% x $675,000 = $20,925.
Why This Is the Correct Answer
$675,000 x 3.10% = $20,925, using the 85.01% to 90% LTV rate.
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