Calculate the GDS and TDS of the following transaction. GDS=35% and TDS=42% Purchase price: $780,000 Down payment $180000 Mortgage interest: 3.15% Amortization 20 years (with accelerated bi-weekly Payment option) Property taxes: 89200 Heating cost $2600 Credit card balance: $10 000 Balance of credit margin (line of credit): $5,000 Car loan: $500 per month Salary of the wife: $225,000 Salary of the husband: $ 80,000 Annual Gross Rental Income: $20 000

SHOW YOUR CALCULATION AND EXPLAIN IF THE CLIENTS QUALIFY OR NOT: