As a seasoned lending officer with Royal Bank, you are very familiar with the federal regulations related to the stress test requirement when dealing with mortgage requests from your customers. You have just met with Rochelle and Kristin, a same-sex couple who you have been lending to for the past 10 years. They are hoping to purchase a larger condo in the building they live in, and they would like to know the maximum amount of mortgage they could qualify for. The only debt they have is a credit card, which they pay off completely every month, and their credit scores are very good. The couple has a combined annual income of $132,000. The condo fees for the unit they hope to purchase are $520 per month, and the annual taxes are $2,400. The heating costs are $80 per month, Electricity is $100 per month and they pay $600 per year for interior property insurance. The couple is interested in a mortgage with a 25-year amortization and a 5-year term, which currently has an interest rate of 3.8%. Calculate the maximum monthly payment ?

Answer rating: 100% (QA)

To calculate the maximum monthly mortgage payment that Rochelle and Kristin could qualify for we nee... View the full answer