1. How has the change in government policy with regards to amortization period and down payments influenced the housing market?
2. Why are bank executives asking the government to increase regulations? Isn’t it in the interest of all business executives to have less regulation to enable them to create profits for their shareholders?
3. Visit the TD Canada Trust website and access the Mortgage Calculator tool at www.tdcanadatrust.com. How much is the posted rate for a 5 year mortgage? How much will it cost you (monthly payment) to get a mortgage of $250,000 with a 25 year amortization? What is the total cost of your interest payments over the lifetime of the loan?
4. Based on the scenario provided in the case, what should Jane and Tom do under the circumstances that they are facing? Should they wait for the market to improve and stay in their home? Should they walk away and buy another home? What other factors must they consider?