Mini-Case D: (2 marka) Mary has a credit score of 700. She is looking to make an offer a condo for $475,000 in two weeks on March 12. 2021. She cannot afford conventional meet and has saving of 10% to eas down payment. For Macy to get a mortese, she requires mortelan insurance to help protect her lender (Royal Bank of Canada (RB) gainst a portal moetegedett. Macy needs to meet the following requirements under Ganada Mortgage and Housing Corporation (CMHC) to quality for mortgage loan insurance The maximum amortization for insured mortgages 25 years The minimum down payment is 5% on a home valued at $500,000 and under There are several other requirements to be approved for default insurance under CMHC coverage These requirements changed on July 1, 2020 in response to the economic downtum. To be eligible for CMHC default Insurance coverage after July 1st, borrowers must: Have a Gross Debt Service ratio of less than 5% Have a Total Debt Service ratio of less than Have a credit score of at least 680 *Note that prior to July 1, 2020, the GDS/TOS ratios were 39/44% respectively if all borrowers had a credit score of 680 or higher, however if one borrower failed to meet the 580 credit score, the ratio decreased to 35/42 Default Mortgage Insurance rates: LO a) Macy is going to the Royal Bank of Canada (RBC) to discuss her potential mortgage with them. RBC will be calculating Macy's Total Debt Service (TOS) ratio. Macy's gross annual income is $129,000. The property that she is looking to purchase would result in monthly heating costs of $475, condo fees of $1,900 per year, while her annual property taxes would be $4,750. Her only debt is a car loan of $875 per month. Calculate her TDS ratio using a monthly mortgage payment of $2.500 (1 mark) Calculation Page 1 of 1 b) Does Macy meet the TDS ratio requirement for CMHC default Insurance? Underline and highlight your response) (5 mark) Yes or No Calculate Macy's mortgage default Insurance using the above table Default Mortgage Insurance rates? 15 mark) Calculation Mini-Case D: (2 marka) Mary has a credit score of 700. She is looking to make an offer a condo for $475,000 in two weeks on March 12. 2021. She cannot afford conventional meet and has saving of 10% to eas down payment. For Macy to get a mortese, she requires mortelan insurance to help protect her lender (Royal Bank of Canada (RB) gainst a portal moetegedett. Macy needs to meet the following requirements under Ganada Mortgage and Housing Corporation (CMHC) to quality for mortgage loan insurance The maximum amortization for insured mortgages 25 years The minimum down payment is 5% on a home valued at $500,000 and under There are several other requirements to be approved for default insurance under CMHC coverage These requirements changed on July 1, 2020 in response to the economic downtum. To be eligible for CMHC default Insurance coverage after July 1st, borrowers must: Have a Gross Debt Service ratio of less than 5% Have a Total Debt Service ratio of less than Have a credit score of at least 680 *Note that prior to July 1, 2020, the GDS/TOS ratios were 39/44% respectively if all borrowers had a credit score of 680 or higher, however if one borrower failed to meet the 580 credit score, the ratio decreased to 35/42 Default Mortgage Insurance rates: LO a) Macy is going to the Royal Bank of Canada (RBC) to discuss her potential mortgage with them. RBC will be calculating Macy's Total Debt Service (TOS) ratio. Macy's gross annual income is $129,000. The property that she is looking to purchase would result in monthly heating costs of $475, condo fees of $1,900 per year, while her annual property taxes would be $4,750. Her only debt is a car loan of $875 per month. Calculate her TDS ratio using a monthly mortgage payment of $2.500 (1 mark) Calculation Page 1 of 1 b) Does Macy meet the TDS ratio requirement for CMHC default Insurance? Underline and highlight your response) (5 mark) Yes or No Calculate Macy's mortgage default Insurance using the above table Default Mortgage Insurance rates? 15 mark) Calculation