Hannah earns an annual salary of $72 000 and has the following monthly expenses. She is paid bi-weekly.

Rent $1300

Groceries and restaurants: $700

Transportation $300

Car loan, 3 more years $300

Hobbies and entertainment $550

Student loan, 5 more years $350

Savings $700

Hannah has $31 000 in her savings account at Royal Bank which she is willing to use as a down payment. There is a new housing development going up in her area and she hopes to be able to purchase her own place. Current mortgage interest rates are 1.8%. The property taxes will be $170 per month and heating costs of $80 per month. The average price of a new home in the development is $425,000.

Required: Determine whether Hannah can qualify for the required mortgage to purchase the home. You should consider the GDS ratio, TDS ratio, and various combinations of amortization and payment frequencies to help you determine whether she can qualify or not.