Eva and Jorge just received the call from their real estate agent that their offer of $350,000 was accepted on a Montreal condo! Money will be tight since it took all their savings for a 10% down payment. They are trying to monitor their costs to avoid any surprises. The Canada Mortgage Housing Corporation (CMHC) mortgage loan insurance premium is 3.10% of the mortgage amount which they have decided to pay at the time of closing instead of adding it to their monthly mortgage. Other fees include a $650 bank appraisal fee, a $800 home inspection fee, $1,800 notary fees, land transfer tax (also known as the Welcome tax or Transfer duties see table below) and $850 for title insurance and homeowners insurance of $1,000.

In Montral, the value brackets from January 1 to December 31, 2023, are as follows:

Tax base value	Rate
Up to $55,200	0.5%
$55,200 to $276,200	1%
$276,200 to $552,300	1.5%
$552,300 to $1,104,700	2%
$1,104,700 to $2,136,500	2.5%
$2,136,500 to $3,113,000	3.5%
Higher than $3,113,000	4%

a)How much will Eva and Jorge need to cover at closing including the down-payment?

b)Eva and Jorges bank just called as they calculated their Gross Debt Service (GDS) ratio as 32%, how much will the monthly mortgage payment be based on this ratio? Evas gross annual income is $120,000 while Jorges is $115,200. The monthly heating would be $475, condo fees of $800 per month, and annual property taxes would be $3,600 along with monthly debt payments of $1,755.

c)Eva decided to buy a house with Jorge, even though she knows he is terrible with money and has a poor credit score. Eva has always been a saver while Jorge is a big spender which is why they only have 10% as a down payment and require mortgage loan insurance, which Eva had hoped to avoid. They also have a high interest rate on their mortgage due to his poor credit card management (i.e. at capacity as he only pays the minimum amounts each month). Provide Jorge with 3 ways that he can improve his credit score: