Martee 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 Sales Coordinator earning $84,000/yr gross income (net income $59,000)

• Her expenses include rent ($1,500/mo), food & clothes ($500/mo), cell & intranet ($100/mo), miscellaneous ($150/mo)

• Assets include: a car ($10,000), RRSPs ($30,000), a savings account ($20,000) and a recent inheritance of $50,000
• Liabilities include a car loan ($150/mo, $2,000 outstanding), and a credit card with a $10,000 limit paid in full monthly.

Based on the information above show your calculations for each of the following questions:

1. Calculate Martee’s current monthly cash flow
2. In order to purchase the condo, first, determine 2 down payment options for Martee (high ratio & conventional). How much would the downpayment be and where would Martee get the money from?
3. Calculate Martee’s monthly mortgage payment if she had a conventional mortgage on her new condo and selected a 5-year term at a fixed rate of 3.85%, with a 25-year amortization
4. Calculate Martee’s Gross Debt Service Ratio and Total Debt Service Ratio if she purchased the condo
5. If Martee had a good credit score do you think she would be approved for this mortgage? Why?
6. 
   

Answer rating: 100% (QA)

1 Martees current monthly cash flow is 3550 Income 84000yr gross income net income 59000 ... View the full answer