Imagine you are a Financial Planner, standing in an elevator with a prospective client. Write brief 30 second elevator speech to describe what you do and how you help clients.

2. Tom and Sara have decided to buy a new car that they estimate will cost $35,000 and are wonderinghow they can finance this purchase. They own their home which is worth $850,000 and have amortgage of $210,000, and monthly mortgage payments of $2,200. Annually they pay $4,000 inproperty taxes and $1,440 in heating costs. They have no other debt.Possible marks: 15a) List 3 different types of personal loan products that could be used to finance the purchase of a carand the pros and cons of each.b) If their annual gross income is $115,000, what could they afford in terms of a monthly car payment?

3. Case StudyTracey would like to purchase a condo worth $450,000 with condo fees (including utilities) of $400/mo,annual taxes of $1,800 and closing costs of $4,500. She works as a Marketing Coordinator earning $96,000/yr gross income (net income $65,000) Her expenses include rent ($1,500/mo), food & clothes ($500/mo), cell & intranet ($100/mo), gymmembership ($50/month), travel/entertainment ($200/month), miscellaneous ($150/mo) Assets include: a car ($10,000), RRSPs ($30,000), a savings account ($20,000) and a recentinheritance of $50,000 Liabilities include: a car loan ($150/mo, $2,000 outstanding), a credit card with a $10,000 limit paid infull monthly.Based on the information above show your calculations for each of the following questions:

A) Calculate Tracey's current monthly cash flow

B) In order to purchase the condo, first determine 2 down payment options for Tracey (high ratio &conventional). How much would the down payment be and where would Tracey get the money from?

C) Calculate Tracey's monthly mortgage payment if she had a conventional mortgage on her new condoand selected a 5 year term at a fixed rate of 5.00%, with a 25 year amortization

D) Calculate Tracey's Gross Debt Service Ratio if she purchased the condo

E) Calculate Tracey's Total Debt Service Ratio if she purchased the condo

F) If Tracey had a good credit score do you think she would be approved for this mortgage? Why?

Answer rating: 100% (QA)

As a Financial Planner my goal is to help you achieve your financial dreams and secure your future I provide personalized strategies to manage your money invest wisely and reach your goals Whether its ... View the full answer