Customer's Name: Jim Customer's Name: Phyllis Previous Address fif less than 2 years): Address: 6157 Lakeshore Road, Unit 322, Oakville (own) EVERYDAY BANK Loan Application Summary (For Internal Use Only Age: 43 Marital Status: Married Age: 43 Marital Status: Mamed Time: 6 years N/A Contact Information: Jim@gmail.com: 289-666-4343 Purpose of Application: Mortgage for the purchase of a new home Loan Details: $300.000 mortgage 25-year amortization, 5-vear term at 3% Interest, with monthly payments of $1,419 per month Employment: Jim --- Xerox Canada Time on Job: 10 years Position: Monoger of Shipping and Receiving Previous Employment of less than 2 years): N/A Income: Jim - $48.000/ (gross) Additional Income: NI Employment: Phylis ---Twinkle Toes Dance Studio Time on Job: 12 years Position: Dance Instructor Previous Employment of less than 2 years): N/A Income: Phylls --- $36.000/ (gross) Additional Income: $12,000/yr lessons Description of Assets Balance 1. Chequing Account with Everyday Bank (Open 12 years) 2.100 2. Savings Account with Everyday Bank (Open 3 years) 6,000 3. Deposit on New House 10.000 4. Ford F-150 Truck 22,000 5. Subaru Legacy 17,000 6. RRSP (Jim) 36,000 7. RRSP (Phyllis) 29.000 8. Condo in Oakville 366,000 9. Furniture and Appliances 21,000 10. Phyllis's Jewellery 11.000 11. Jim's Stamp Collection 8,000 Total $530,100 Liabilities and Credit Payments Amount/ mth Balance 1. Mortgage on Existing Home 1.328 240.000 2. Taxes on Current Residence ($3,600/yr) 300 3. Condo Fees on Current Residence 280 4. Heating on Current Residence 60 5. Electricity on Current Residence 100 6. Jim's Cell Phone 81 7. Phyllis's Cell Phone 68 8. Internet Cable 97 9. Car Loan for F-150 545 18,000 10. Visa Card (Limit: $4,000) 0 0 11. MasterCard (Limit: $5,000 30 600 $2,889 $258,600 Total Total Net Worth (Assets - Liabilities) $271,500 Poge 1 of 2 A New House for Jim and Phyllis Jim and Phyllis have purchased a new house for $420,000, which closes on May 1st of this year. The taxes on the new home are $4,000 per year, and they expect their new heating bill to be $100 per month. Last night they sold their existing condominium for $368,000, and that deal closes on May 1st of this year as well. They currently have a mortgage with Everyday Bank for $240,000, and the mortgage is open for repayment at any time without penalty. They made a $10,000 deposit on their new home and have come to you for help in arranging a mortgage for $300,000 (the extra amount is to assist them with decorating and moving expenses). You have completed the application and performed a credit check with the credit bureau on both of them. You looked at the credit bureau report for both Jim and Phyllis, noting that they have excellent credit history. With the given information, answer the following questions: 1. Calculate the couple's current TDSR, using credit card payments based on the full limits of their cards. 2. Calculate the couple's current GDSR. 3. Calculate the couple's new TDSR and GDSR with the new house and mortgage, using credit card payments based on the full limits of their cards. 4. Based on your new calculations, would you give the couple the mortgage? Why or why not? Customer's Name: Jim Customer's Name: Phyllis Previous Address fif less than 2 years): Address: 6157 Lakeshore Road, Unit 322, Oakville (own) EVERYDAY BANK Loan Application Summary (For Internal Use Only Age: 43 Marital Status: Married Age: 43 Marital Status: Mamed Time: 6 years N/A Contact Information: Jim@gmail.com: 289-666-4343 Purpose of Application: Mortgage for the purchase of a new home Loan Details: $300.000 mortgage 25-year amortization, 5-vear term at 3% Interest, with monthly payments of $1,419 per month Employment: Jim --- Xerox Canada Time on Job: 10 years Position: Monoger of Shipping and Receiving Previous Employment of less than 2 years): N/A Income: Jim - $48.000/ (gross) Additional Income: NI Employment: Phylis ---Twinkle Toes Dance Studio Time on Job: 12 years Position: Dance Instructor Previous Employment of less than 2 years): N/A Income: Phylls --- $36.000/ (gross) Additional Income: $12,000/yr lessons Description of Assets Balance 1. Chequing Account with Everyday Bank (Open 12 years) 2.100 2. Savings Account with Everyday Bank (Open 3 years) 6,000 3. Deposit on New House 10.000 4. Ford F-150 Truck 22,000 5. Subaru Legacy 17,000 6. RRSP (Jim) 36,000 7. RRSP (Phyllis) 29.000 8. Condo in Oakville 366,000 9. Furniture and Appliances 21,000 10. Phyllis's Jewellery 11.000 11. Jim's Stamp Collection 8,000 Total $530,100 Liabilities and Credit Payments Amount/ mth Balance 1. Mortgage on Existing Home 1.328 240.000 2. Taxes on Current Residence ($3,600/yr) 300 3. Condo Fees on Current Residence 280 4. Heating on Current Residence 60 5. Electricity on Current Residence 100 6. Jim's Cell Phone 81 7. Phyllis's Cell Phone 68 8. Internet Cable 97 9. Car Loan for F-150 545 18,000 10. Visa Card (Limit: $4,000) 0 0 11. MasterCard (Limit: $5,000 30 600 $2,889 $258,600 Total Total Net Worth (Assets - Liabilities) $271,500 Poge 1 of 2 A New House for Jim and Phyllis Jim and Phyllis have purchased a new house for $420,000, which closes on May 1st of this year. The taxes on the new home are $4,000 per year, and they expect their new heating bill to be $100 per month. Last night they sold their existing condominium for $368,000, and that deal closes on May 1st of this year as well. They currently have a mortgage with Everyday Bank for $240,000, and the mortgage is open for repayment at any time without penalty. They made a $10,000 deposit on their new home and have come to you for help in arranging a mortgage for $300,000 (the extra amount is to assist them with decorating and moving expenses). You have completed the application and performed a credit check with the credit bureau on both of them. You looked at the credit bureau report for both Jim and Phyllis, noting that they have excellent credit history. With the given information, answer the following questions: 1. Calculate the couple's current TDSR, using credit card payments based on the full limits of their cards. 2. Calculate the couple's current GDSR. 3. Calculate the couple's new TDSR and GDSR with the new house and mortgage, using credit card payments based on the full limits of their cards. 4. Based on your new calculations, would you give the couple the mortgage? Why or why not