Mr. Smith considered to purchase a townhouse in Vancouver area. Ms. Angel approached Mr. Smith as a

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Question:

Mr. Smith considered to purchase a townhouse in Vancouver area. Ms. Angel approached Mr. Smith as a real estate broker to help Mr. Smith to select, negotiate and purchase the property. Mr. Smith finally signed Purchase agreement for a townhouse in Fraser Valley area at the purchase cost of Cnd$1.2million just recently; Mr. Smith decided to go to Bank B for his mortgage, the mortgage brokerage manager Ms. Catherine greeted Mr. Smith and introduce him for the following mortgage information.

Bank B can offer Mr. Smith's the maximum loan amount (mortgage amount) either capped at 7times of Mr. Smith taxable income 2020 or 65% of townhouse purchase price; in this case, Mr. Smith annual taxable income 2020 was cnd$100,000;
The nominal mortgage rate is 2% per annum, and financial institution in Canada is allowed to quote the rate at semi-annual compounding;
The mortgage will be paid bi-monthly based on the bank's risk analysis of Mr. Simith cash flows;
Ms. Catherine offered Mr. Smith the amortization period of 20 years to 25 years, which is negotiable at Mr. Smith's decision

Mr. Smith is happy with the mortgage rate, which is low, and would like to borrow as much as possible and give himself disposable cash flow more flexible.

Question: Quantitative analysis; based on the information provided in above, please calculate Mr. Smith monthly mortgage payment amount to his best interests (please illustrate the each number for time value calculation, step by step.