1. Sandra and John are looking to make an offer on a condo on Sherbrooke Street for $425,500, close to Concordia where Sandra works. The closing is on October 30, 2021. They have saved the exact amount for a deposit to be a conventional mortgage.

1. Calculate the down payment if they just meet the conventional mortgage limit.

2. Sandra and John are going to the CIBC to discuss their mortgage. Based on the following information, calculate the Gross Debt Service (GDS) ratio. Sandras gross annual salary is $110,120, while Johns is $99,600. The property that they are looking to purchase would result in monthly heating costs of $566, condo fees of $3,010 per year, while their annual property taxes would be $5,436. Sandras only debt is a car loan of $775 per month and while Johns is a student loan of $200 per month. Calculate the GDS ratio using a monthly mortgage payment of $3,050.

Calculation of the GDS ratio: