Question: Question 5: (25 points) SHOW YOUR CALCULATION Calculate the maximum, purchase price that a couple can afford for the dream house. Maximum purchase capacity: $__________________________

Question 5: (25 points) SHOW YOUR CALCULATION Calculate the maximum, purchase price that a couple can afford for the dream house.

Question 5: (25 points) SHOW YOUR CALCULATION Calculate the maximum, purchase price

Maximum purchase capacity: $__________________________

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): Credit Card (monthly): $250 $225

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