What is the original principal balance of the mortgage?

To determine the original principal balance of a mortgage, you need to look for key indicators that provide insight into the financial details of the loan. The original principal balance is essentially the total amount borrowed by the borrower from the lender at the outset of the loan agreement.

In this case, if option A ($295,000) is chosen as the original principal balance, it suggests that this amount aligns with the typical range for certain property types or home values in Saskatchewan at the time. It could also mean that the loan amount was tailored to fit the borrower’s capacity to repay based on their financial situation, including income and creditworthiness.

Moreover, the other options could represent either inflated amounts for properties or loans that are above what is typical for the scenarios being presented, making them less likely as an original principal balance in many instances. Identifying the correct principal balance often involves assessing the market and economic context that might influence typical borrowing amounts in a given area at a specific time.