Bob and Sally would like to apply for a mortgage.  They are purchasing a house for $525,000 and have $125,000 as a down payment.  They have requested weekly payments for a 3 year term at 3.95% compounded semi-annually with a 35 year amortization.  The payment for this proposed mortgage is $403.68.  They have told you that they also have a car payment of $255 per month, annual car insurance of $2,100, an RRSP contribution of $70 per month by payroll deduction, a weekly loan payment of $35 and total monthly credit card payments of $410. Their property taxes are $2,600 per year.  Their combined income is $114,000 per year and heat on this house is $75 per month. What is their TDS?

Answer rating: 100% (QA)

To calculate their TDS Total Debt Service ratio we need to first calcula... View the full answer