Consider an interest-only closed Canadian mortgage. It is offered over 15 years; has monthly payments; the contract mortgage rate is 3%; the mortgage amount is $800,000; the roll-over period is 3 years; the interest rate that will prevail at the roll-over point is 4%.

Provide step-by-step details of your work and show the amortization schedule for the (i) first two payments in the initial payment period and (ii) the last two payments in the first roll-over payment period.

Answer rating: 100% (QA)

To calculate the amortization schedule for an interestonly closed Canadian mortgage we need to consider the mortgage amount the contract mortgage rate ... View the full answer