Jane targets a house $($non$-$condo$)$ for $600,000$ and would like to have the maximum possible conventional loan $($hint: what is the LVR$?).$ Assume the lending value assessed by the lender is also $600,000.$ Jane wants the loan to be amortized over $25$ years with monthly payments. Mortgage contract rate $j_2=4\%$ and Bank of Canada $5-$year posted fixed rate $j_2=5\mathrm{.}25\%.$ Property taxes for the house are $3000/$year and heating costs are estimated $60/$month$.$ Jane makes $100,000$ a year. She has a car loan payment of $\frac{350}{?}$ month and credit card loan payment of $\frac{250}{?}$ month.

$($a$)$For mortgage underwriting, what would be the qualifying$|$ rate to use?

$($b$)$ How much mortgage Jane would like to have? Suppose the lender only uses TDS $($criterion $40\%)$ for underwriting. Would Jane qualify for the mortgage?

$($c$)$ What is the affordable mortgage amount she would qualify for? Use TDS$.$

$($d$)$ Given your answer of $($c$),$ what would be the amount of down payment she would save in order to buy the house priced $600,000$