Mini$-$Case C: $(3\mathrm{.}5$ marks$)$

Monali and her spouse, Nitish, met while working at Hydro$-$Qu$$bec$.$ Monali earns a gross annual salary of $$120,000,$ while Nitish earns $$115,000.$ As of March $6,2025,$ Monali has provided the following information: $$

$$

$$ Monali and Nitish, who have January birthdays, celebrated with a trip to Quebec City. Monali is $29,$ and Nitish is $30.$

They are currently renting but have had their offer accepted $($and now own!$)$ a condo in downtown Montreal valued at $$500,000.$

Nitish has a Tax$-$Free Savings Account $($TFSA$)$ with a market value of $$10,000($contributions of $$7,000$ made in $2024).$

They have one car worth $$30,000($with a monthly car loan payment of $$500$ for a remaining car loan of $$12,000).$

Hydro$-$Quebec will withhold Federal and Quebec taxes, plus source deductions of $$33,000$ from Monali$$s gross annual salary, and $$31,000$ from Nitish$$s$.$

If this offer goes through, they have been told that the monthly mortgage loan repayments would be $$2,945($this includes the mortgage loan insurance$).$ Heating costs would be $$200$ a month, annual municipal property taxes of $$4,000,$ and monthly condo fees of $$300.$

$$

a$)$ Monali and Nitish have a $5\%$ down payment. Since this is considered a high$-$ratio mortgage, calculate the Canada Mortgage and Housing Corporation $($CMHC$)$ loan insurance premium they will need to pay, given that CMHC charges $4\%$ of the mortgage amount for loan insurance.

$(\mathrm{.}75$ marks$)$

b$)$ What is the Total Debt Service $($TDS$)$ ratio the bank calculated? $(\mathrm{.}75$ marks$)$ TDS$$Ratio Formula $=$

Monthly Mortgage Loan Repayment $+$ Monthly Heating Cost $+$ Monthly Property Taxes $+(1)/(2)$ Monthly Condo Fees $+$ Monthly Consumer Debt Payments divided by

Gross Monthly Household Income