You Made a $100,000 Down Payment on a $400,000 House

Multiple Choice

You made a $100,000 down payment on a $400,000 house and financed the remaining amount with a Canadian fixed-rate mortgage.Your mortgage has a term of three years, an amortization period of 25 years, a quoted rate of 7% and payments are made monthly.Identify the correct statement.

A) The 7% quoted rate does not represent the effective annual rate charged on the mortgage.
B) The interest rate is fixed for 25 years.
C) You will make a total of 36 monthly payments to pay off the mortgage.
D) You have a high-ratio mortgage.
E) Your interest rate is fixed for 3 years, variable for 22 years.