Question: Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity and maximum purchase price that a couple can afford for the dream

Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity

Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity and maximum purchase price that a couple can afford for the dream house. FILL OUT THE TABLE. GDS ratio 32% TDS ratio 42% Available down payment $20,000 Borrower's income: $45,000 Spouse's income: $30,000 Municipal taxes: $2,400 School taxes: $600 Annual heating cost: $1,440 Mortgage interest and amortisation period : 5.0 % - 25 years Other debts: Car loan (monthly): $225 Credit Card (monthly): $250 Calculation: Show work Maximum Payment (GDS) (5 points) Maximum payment (TDS) (5 points) Maximum borrowing capacity (5 points) Maximum purchase capacity (5 points)

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Calculation Total Monthly Income Borrowers income Spouses income 12 45000 30000 12 6250 Total Recurr... View full answer

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