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Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity and maximum purchase price that a couple can afford for the dream

 



Calculate the maximum payments based on GDS, TDS ratios, maximum borrowing capacity and maximum purchase price that a couple can afford for the dream house. FILL OUT THE TABLE. 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): $225 Credit Card (monthly): $250 Calculation: Show work Maximum Payment (GDS) (5 points) Maximum payment (TDS) (5 points) Maximum borrowing capacity (5 points) Maximum purchase capacity (5 points)

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