Question
Calculate the GDS and TDS of the following transaction of Michael Baker and let him know if he is qualified to get a mortgage loan
Calculate the GDS and TDS of the following transaction of Michael Baker and let him know if he is qualified to get a mortgage loan from Bank ABC. GDS=32% and TDS=40% /10pts
Purchase price: $300,000
Down payment $50,000
Mortgage interest 5%
Amortization 20 years
Property taxes: $2200
Heating cost $1400
Credit card: $500 per month
Balance of credit margin (line of credit): $40000
Car loan: $1200 per month
Salary of Michael Baker (Borrower): $125,000
Use the CMHC premium table if necessary!
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
