Exam 2: Managing Your Financial Resources - Purchasing and Financing a Home

Total mortgage financing of $968 per month,and monthly debt payments of $530,given total monthly household income of $3457 results in a gross debt service ratio of 28 percent.

Which of the following is the best advice in determining how large a mortgage you can afford?

The lawyer normally will look after services for you when purchasing a home except for the

The interest rate on a VRM may be adjusted

A house is appraised at $298 000 and you have a down payment of $25000 .CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,2.40 percent; up to 85 percent,2.80 percent; up to 90 percent,3.10 percent; up to 95 percent 4.00 percent.What will be the approximate total amount of the mortgage if the CMHC fee is included in it?

For a $72 000 mortgage at nine percent,the monthly payments would be $730 for a 15-year mortgage and $579 for a 30-year mortgage.What would be the expected total savings in interest by taking a 15-year mortgage?

Gross debt service ratio refers to a calculation of all mortgage-related financing and must not exceed 32 percent of total household income.

Which of the following payment options would result in the lowest amount of interest paid on a mortgage?

The purchase of a home represents a potential risk if you need to move quickly and the home does not appreciate rapidly in value.

Ianna has found a fixed rate mortgage for $300 000 at four percent interest amortized over 30 years.Her payment will be $1426 per month.How much would her payment be if she wanted to amortize the mortgage over 15 years?

Which of the following is an advantage of using online realtor services?

Mohammed and Parm are recently married and neither of them has ever owned a home.They wish to use the Home Buyers' Plan (HBP)to make their down payment on their first home.If they each have $75000 in their RRSPs,how much can they access for their down payment through the HBP?

Making extra mortgage payments does which of the following?

How are most home purchases initially funded?

Principal,interest,and property taxes on a mortgage are $1209,with heating costs of $68 and condo fees of $180 monthly.The borrower also has a student loan with $100 monthly payments.If the gross debt service ratio required is 32 percent,what will be the lowest monthly income that will qualify for the mortgage financing?

Mortgage companies usually charge interest semi-annually.What would be the effective rate of interest on a mortgage at 8.25 percent compounded semi-annually?

The total household income available is $3963.Mortgage payments including taxes,principal,and interest are $1189.In addition,there are condo fees of $126 and heating costs of $56 monthly and a car lease of $241.What is the gross debt service ratio?

Martina and Anton are attempting to qualify for total mortgage financing of $1486,heating costs of $68,and they have a car loan payment of $346.What minimum gross monthly income will they need to qualify for both GDS ratio of 32 percent and TDS ratio of 40 percent?

An amortization schedule shows all except the

A 15-year mortgage compared to a 30-year mortgage has