Nate and Kate are looking to buy their first home but prices during this period are still
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Question:
Nate and Kate are looking to buy their first home but prices during this period are still high. They are looking to purchase a condo that is on the market for $420,000.
- Nate and Kate are going to the Royal Bank of Canada (RBC) for their potential mortgage. Calculate the Gross Debt Service (GDS) ratio:
- Nate's gross annual salary is $95,750, while Kate's is $98,650.
- The property they are looking to purchase would result in monthly heating costs of $520, condo fees of $2,380 per year, while their annual property taxes would be $2,060.
- Nate's only debt is a car loan of $275 per month, while Kate has a student loan of $95 per month.
- Calculate the GDS ratio using a monthly mortgage payment of $3,600.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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