David and Lilah want to spend no more that 40 percent of their gross income on housing.  David makes $80,000 per year as a teacher and Lilah makes $100,000 as an analyst. Property taxes and condo fees total $3,000 per month. David and Lilah will finance their purchase with a 5-year, 5% fixed-rate mortgage loan, with a 25-year amortization period.  They have saved up $35,000 to use as a down payment for a condo. CMHC premiums on mortgage insurance are given in the table below.

 

CMHC Premiums:

Loan to Value	Premium
Up to 65%	1%
From 65.01% to 75%	2%
From 75.01 to 85%	3%
From 85% to 95%	4%

 

How much can Lilah and David spend on their condo (price of the condo)?

Answer rating: 100% (QA)

ANS WER To calculate how much Lil ah and David can spend on their condo we first need to ... View the full answer