Date: July 25, 2016 Suzanne Borrower and Jack Borrower Current Address: 5678 Renter Boulevard. Toronto. ON. M15 101 Dear Suzanne and Jack I am pleased to advise you that the following loan to be senired by a mortgage on the subject property. has been approved providing that all the information supplied is B correct and subject to the conditions outlined. This commitment is not transferable, and the benefit may not be assigned. Principal Amount 5 800,000.00 Insurance Fee 5 10,000100 C Lender's Fee 5 8.000.00 Total Mortgage $ 818.000.00 Property Value $1,000,000 D Max LTV Purpose Purchase 53.812.54 Payment Amount jax Portion INLA " Total Payment $3.812 54. Total Payment: $3,812 54 11 Interest Rate Refer to the rate sheet compounded semi- annually Payment Frequency Monthly Applicant(s) Suzanne Borrower and jack Borrower K Security Address: 5678 Renter Boulevard, Toronto, ON, MIS IN1 Co-Applicant(5) N/A Term . 5 years M . Amortization: 25 years Closing Date August 20. 2016 N * 20% per year when not in default Prepayment Privileges/ O . Up to 100% payment increase when not in Penalties default . NSF Fee: $150When not in default . NSF Fee: $150 Your clients are reviewing the commitment letter from Toronto Lending Corporation and are asking you how much of a prepayment they can make and how much they can increase their payment to if they are up to date on all of their mortgage payments. What wil you tel them? Select one: a. Lump sum payment of $200,000 and increase to $4,575.05 . b. Lump sum payment of $163,600 and increase to $7,625.08 C. Lump sum payment of $100,000 and increase to $7,625,08 d. Lump sum payment of $200,000 and increase to $3,812.54