Harry is a full-time retail store manager earning a gross income of $85,000 per annum. He's planning to purchase an apartment in Ottawa. He has $120,000 for a down payment. The expected property taxes are $2,500/year, the expected heating is $1,500/year, and he has other debt obligations of $3,000/year.

Harry is going to get a mortgage from the bank his friend recommended, which offers a 5-year fixed-term mortgage at a rate of 3.15% per annum. He would get a 25-year amortization and make monthly payments.

Round to second decimal place (e.g., 1.23)
Required:

Estimate the amount of home that Harry can afford, based on his gross income, expected expenses, the TDS ratio of 40%, current mortgage rate, and down payment. (10 marks)
Ignore other restrictions (e.g., GDS, stress test) for this question.
What is the outstanding balance after five years on the mortgage? (5 marks
If he decided to renew the mortgage at the rate of 4.5% after five years, what is the new monthly payment amount?