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Complete the following calculations in the space provided. When you buy a home with a mortgage in Canada, you must take out mortgage insurance, which covers additional risk that come with a buyer defaulting on the mortgage (Not paying the loan). The Canada Mortgage and Housing Corporation (CMF charges insurance rates that depend on the amount of the down payment. The following table indicates how much insurance you according to percentage value of down payment on a home. 1. The total purchase price of the home (list price + CMHC Insurance): 2. Amount of the mortgage (Total purchase price - down payment): 3. Closing costs: - Land transfer tax, 1% on the first $200,000 of the list price of the home and 2% on the remaining amount - Legals fees (assume $2,000 ). - Home Inspection and appraisal (assume $1,600 ). Total closing costs: 4. Monthly mortgage payment (Formula in Appendix 1, Online Mortgage Calculator, or other) Now we calculate the total monthly cost of the mortgage (to the nearest \$): 1. Monthly mortgage payment (as calculated earlier) 2. Monthly home maintenance (assume the annual cost is 1.2% of the home price). 3. Property tax (Assume $450 per month). 4. Home insurance (This protects the home owner in case of unforeseen events e.g. Vandalism, Theft, Acts of Nature, etc, This is NOT CMHC) (Assume \$2000 per year). 5. Total monthly cost is

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