Anna & Shane have decided that they have outgrown their existing apartment and it$$s time to find a home that they can invest in and make their own for their growing family. They have been saving money for a down payment over the past $3$ years and have been keeping an eye on the market, waiting for the best time to enter into the residential market. Anna & Shane are very excited because they have worked hard and have been able to save $$85,000$ for a down payment. Shane is an electrical engineer for a local contractor and earns an annual salary of $$117,800.$ Anna is a part$-$time administrative assistant for a pediatrician and her annual salary is $$42,000.$ They have $3$ children who are $6$ years old, $4$ years old and $18$ months old.

They have the following debts:

Debt Limit Owning Monthly Payment

TD Auto Loan N$/$A $$21,000$ $$418$

CIBC Visa $$10,000$ $$1,753$ $$53$

Student Loan $($Anna$)$ $$12,000$ $$3,850$ $$78$

They decided to purchase a house in a neighborhood where property taxes for the year are usually $$3,750/$year and heating bill is usually $$150/$month$.$

Q$1$: What would be max. amt of mortgage$/$ month they would qualify for based on GDS calculation?

$($assume no mortgage default insurance$)$

Q$2$: What would be max. amt of mortgage$/$ month they would qualify for based on TDS calculation?