QUESTION 36
1.
· Dalia is 29, has been working full time for five years and wants to buy a condo
· Her cash flow is presented below
· The total projected heat, property tax, and 50% strata fees are $440 a month
· Assume max GDSR is 30% and TDSR is 40%
· The qualifying mortgage rate is 4% compounded semi-annually with 25 years amortization
Cash Flow
Gross monthly income
4,833
Net monthly income
3,400
Expenses:
Rent
700
Groceries/Food
400
Car loan payment
700
Misc. living expenses
1,000
RRSP savings
100
TFSA savings
300
Net cash flow
200
GDSR = 0.3 = (property tax + heat + 50% strata fees + mtg payment) / gross monthly income
TDSR = 0.4 = (property tax + heat + 50% strata fees + debt payments + mtg payment) / gross monthly income
Answer in the spaces below. Round all answers to the nearest whole number. Do NOT input any $, commas, or decimals.
A. The monthly mortgage payment according to GDSR is ?
. The monthly mortgage payment according to TDSR is ?
c. The maximum mortgage amount she can qualify for is ?
d. The maximum condo purchase price she can afford based on 20% down payment is ?
question 37. How much would Doug save in interest if he amortized his mortgage over 15 years, rather than 25 years, and assuming he makes monthly payments. The total mortgage amount is $350,000 and the interest rate is 2% compounded semi-annually. Input the answer with 2 decimal places.