Calculate the amount needed to cover their transfer duties

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Reference no: EM133612265

Problem: Mini-Case- Leanne and Fritz just had their offer of $405,000 accepted on a new home! They are over the moon as they have been looking to purchase their first home for some time when finally, this beautiful home went on the Montréal market for $420,000. The offer was over their budget and now they can only afford a down payment of 5%. They understand they will need to purchase mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) at 4% of the mortgage. (Note: ignore provincial sales tax on the CMHC insurance premiums). Leanne and Fritz forgot that they also need to pay Transfer Duties (also called "Welcome Tax") on this home. They went online to find the link for the 2023 Transfer Duties. Article: "How property transfer duties are calculated". They are looking to you to help them calculate the amount needed to cover their Transfer Duties under the city of Montréal and CMHC mortgage loan insurance (they know that they have the option to pay the mortgage loan insurance as either a lump sum or they can increase their mortgage payments; they decided to pay the CMHC as a lump sum). Show calculations for the CMHC mortgage.

Reference no: EM133612265

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