Jesiah and Cassandra Hamilton have been married for 2 years. They are presently living in an older home and have come to you seeking financing so that they can renovate their kitchen in their home. Jesiah has priced out the renovation project and brought in some written estimates. He estimates the cost of the renovation to be $30,000. Jesiah and Cassandra want to repay the loan over 5 years. Jesiah has taken a building construction course at NAIT is excited to use the skills he has learned. The Hamilton's house is valued at $355,000. The mortgage was for $315,950 with a 5-year term, amortized over 25 years at 3.25%. Please Calculate the Monthly Mortgage Payment: Number (1 mark) They have made 13 payments on the mortgage. Please calculate the balance owing on the loan. Number (1 mark) This branch approved the mortgage. Taxes are $296 a month and heating is estimated at $150. They currently have $10,000 in a joint savings account at the branch. Neither of them contributes to an RRSP. Jesiah has clear title to some undeveloped property 80 miles west of Edmonton he inherited a few years ago. It is currently valued at $70,000. Eventually Jesiah would like to build a cabin on the property but realizes that this is a long term-goal. Jesiah pays about $58 a month on the taxes. Cassandra also has recently received an expensive painting from her grandmother valued at $17,500 with a certificate of authenticity Jesiah, 29, has been working for RV World for 6 years. He grosses $91,340 annually as lead Heavy Duty Mechanic, much of this is overtime income. Jesiah has provided his Notice of Assessments for his income verification as you has requested (see attached).Cassandra, 25, is in her last year at the U of A. Cassandra works part-time at the U of A bookstore as a cashier she has provided a salary letter, she grosses approximately $22,020 per year. Her manager informed her she was going to receive a 5% increase next month. 24 months ago Jesiah bought a Tundra for $41,000 and financed it with a loan (from a competitor) for $36,900 at 4.29% for 7 years compounded monthly. What is the monthly truck payment? Number (1 mark) What is the balance owing today for the truck? Number (1 mark) The current value of the Tundra is estimated to be $26,600. Equifax shows he has never missed a payment and confirms that there are 60 months remaining on the installment loan. Ratings on their credit cards from Costco ($3,000 credit limit) R2, RBC VISA ($4,000 credit limit) are R1, they do however have a Capital One MasterCard with a R1 rating(credit limit $1,500). They both like the finer things in life, cards are continuously at the maximum credit limits. The do have a The Bay credit card reporting on their credit bureau with a limit of $3,500 but nothing is currently owing. Jesiah recently received an inheritance in the amount of $50,000. Currently he has it invested in a GIC. Jesiah does not want to access these funds at this time and would like the funds to remain as is. He is planning on using these funds in the future to build a cabin on his land. Notice of Assessment for Jesiah Hamilton Tax year 2018 Line Description 150 Total Income. Deductions from total income. 236 Net Income... Deductions from net income.. 260 Taxable Income.... 350 Total federal non-refundable tax credits........................ 6150 Total Alberta non-refundable tax credits. 420 Net Federal Tax.......... 421 CPP contributions.. 435 Total Payable. $ Amount $89,970 $10,976 $78,994 0 $78,994 $3,486 $2,266 0.00 4,207.50 4,207.50 437 Total Income Tax Deducted. $24,883.11 482 3,175.62 minus Total DR 1031.88 0.00 DR Total credits (Total payable credits).. [Penalties... Arrears interest.. Balance Due assessment.. Balance due. DR 0.00 from this 0.00 DR $1,026 DR Notice of Assessment for Jesiah Hamilton Tax year 2019 Line Description 150 Total Income. Deductions from total income 236 Net Income.. Deductions from net income.. 260 Taxable income........ 350 Total federal non-refundable tax credits. 6150 Total Alberta non-refundable tax credits. 420 Net Federal Tax... 421 CPP contributions. 435 Total Payable.. $ Amount $114,442 $14,877 $99,565 0 $99,565 $3,261 $2,173 0.00 4,207.50 4,207.50 437 Total Income Tax Deducted.. $30,367.33 482 3,175.62 minus Total 1031.88 DR DR 0.00 Total credits. (Total payable credits). [Penalties.. Arrears interest.. Balance Due assessment.. Balance due.... DR DR 0.00 from this 0.00 DR $-682 Cassandra's Income Confirmation Letter: Jackson Peters Human Resources Manager University of Alberta 116 St and 85 Ave Edmonton, Alberta TOG 2R3 November 28, 2021 To Whom This May Concern, This letter is to confirm that Cassandras Hamilton is an employee of the University of Alberta Bookstore. Cassandra has been working in a part-time position since September 15th 2020. Her annual salary is 22,020 per annum. If there are any questions or concerns, please feel free to call me at 780-452-3216. Thank you, Jackson Peters Calculate Jesiah's Monthly Income: Number (1 mark) Calculate Cassandra's Monthly Income (assume she is paid equally each month of the year): Number (1 mark) Calculate their assets and liabilities: (Do not leave any blank. Enter "0" if applicable. ASSETS VALUES Property Number (1 mark) Bank Account Number (1 mark) Land Number (1 mark) Tundra Number (1 mark) Investments Number (1 mark) Other Number (1 mark) Total Assets: Number (1 mark) VALUES MINIMUM PAYMENT LIABILITIES Mortgage Number (1 mark) Number (1 mark) Loan Number (1 mark) Number (1 mark) Costco Mastercard Number (1 mark) Number (1 mark) RBC Visa Number (1 mark) Number (1 mark) Bay credit card Number (1 mark) Number (1 mark) Capital One Card Number (1 mark) Number (1 mark) Total Liabilities: Number (1 mark) Calculate Net Worth from lender perspective: Number (1 mark) In reviewing their current financial situation, you would recommend that the Hamiltons also consolidate their consumer debts along with their renovation request Calculate the consolidation loan at 5.9% for 5 years. Monthly loan payment: Number (1 mark) Calculate Jesiah and Cassandra's GDS: Number %(1 mark) Calculate Jesiah and Cassandra's TDS: Number %(1 mark) Do you approve the loan?(1 mark) O Yes O No You recommend to Jesiah and Cassandra that they consider using the Investment asset as collateral to reduce the interest rate on their loan from by 2%. Julia thinks this may be a good idea, calculate the loan payment at at this new rate. Number How does this change their TDS calculation? Number % You recommend to Jesiah and Cassandra that they consider using the Investment asset as collateral to reduce the interest rate on their loan from by 2%. Julia thinks this may be a good idea, calculate the loan payment at at this new rate. Number How does this change their TDS calculation? Number They agree to use the Investment asset as collateral. What documentation is required? Obtain a statement, make a note in your file that you are taking as collateral. Recent statement of investment account. Register a message on your computer system for the investment account that it is taken as collateral for this loan. Obtain a statement, verify the total, and secure collateral for the loan following your financial institution's processes. If you were to consider Cassandras income with the intended increase of 2%, what would you require in order to use for your file? Get her last two years NOAs and take the average. O A new letter confirming her new income total. Call her employer to confirm and verify the raise. Write a note on her existing letter that has been provided. Be sure to date and sign your name. What information to you need to ensure that you payout all debt correctly? What if anything will you need to prepare? Only payout letters are required. O Payout letters, cut-up credit cards, and confirmed outstanding balances. Payout Letters and Cut-up credit cards Confirmation of all balances of accounts being consolidated O Cut-up credit cards Jesiah and Cassandra Hamilton have been married for 2 years. They are presently living in an older home and have come to you seeking financing so that they can renovate their kitchen in their home. Jesiah has priced out the renovation project and brought in some written estimates. He estimates the cost of the renovation to be $30,000. Jesiah and Cassandra want to repay the loan over 5 years. Jesiah has taken a building construction course at NAIT is excited to use the skills he has learned. The Hamilton's house is valued at $355,000. The mortgage was for $315,950 with a 5-year term, amortized over 25 years at 3.25%. Please Calculate the Monthly Mortgage Payment: Number (1 mark) They have made 13 payments on the mortgage. Please calculate the balance owing on the loan. Number (1 mark) This branch approved the mortgage. Taxes are $296 a month and heating is estimated at $150. They currently have $10,000 in a joint savings account at the branch. Neither of them contributes to an RRSP. Jesiah has clear title to some undeveloped property 80 miles west of Edmonton he inherited a few years ago. It is currently valued at $70,000. Eventually Jesiah would like to build a cabin on the property but realizes that this is a long term-goal. Jesiah pays about $58 a month on the taxes. Cassandra also has recently received an expensive painting from her grandmother valued at $17,500 with a certificate of authenticity Jesiah, 29, has been working for RV World for 6 years. He grosses $91,340 annually as lead Heavy Duty Mechanic, much of this is overtime income. Jesiah has provided his Notice of Assessments for his income verification as you has requested (see attached).Cassandra, 25, is in her last year at the U of A. Cassandra works part-time at the U of A bookstore as a cashier she has provided a salary letter, she grosses approximately $22,020 per year. Her manager informed her she was going to receive a 5% increase next month. 24 months ago Jesiah bought a Tundra for $41,000 and financed it with a loan (from a competitor) for $36,900 at 4.29% for 7 years compounded monthly. What is the monthly truck payment? Number (1 mark) What is the balance owing today for the truck? Number (1 mark) The current value of the Tundra is estimated to be $26,600. Equifax shows he has never missed a payment and confirms that there are 60 months remaining on the installment loan. Ratings on their credit cards from Costco ($3,000 credit limit) R2, RBC VISA ($4,000 credit limit) are R1, they do however have a Capital One MasterCard with a R1 rating(credit limit $1,500). They both like the finer things in life, cards are continuously at the maximum credit limits. The do have a The Bay credit card reporting on their credit bureau with a limit of $3,500 but nothing is currently owing. Jesiah recently received an inheritance in the amount of $50,000. Currently he has it invested in a GIC. Jesiah does not want to access these funds at this time and would like the funds to remain as is. He is planning on using these funds in the future to build a cabin on his land. Notice of Assessment for Jesiah Hamilton Tax year 2018 Line Description 150 Total Income. Deductions from total income. 236 Net Income... Deductions from net income.. 260 Taxable Income.... 350 Total federal non-refundable tax credits........................ 6150 Total Alberta non-refundable tax credits. 420 Net Federal Tax.......... 421 CPP contributions.. 435 Total Payable. $ Amount $89,970 $10,976 $78,994 0 $78,994 $3,486 $2,266 0.00 4,207.50 4,207.50 437 Total Income Tax Deducted. $24,883.11 482 3,175.62 minus Total DR 1031.88 0.00 DR Total credits (Total payable credits).. [Penalties... Arrears interest.. Balance Due assessment.. Balance due. DR 0.00 from this 0.00 DR $1,026 DR Notice of Assessment for Jesiah Hamilton Tax year 2019 Line Description 150 Total Income. Deductions from total income 236 Net Income.. Deductions from net income.. 260 Taxable income........ 350 Total federal non-refundable tax credits. 6150 Total Alberta non-refundable tax credits. 420 Net Federal Tax... 421 CPP contributions. 435 Total Payable.. $ Amount $114,442 $14,877 $99,565 0 $99,565 $3,261 $2,173 0.00 4,207.50 4,207.50 437 Total Income Tax Deducted.. $30,367.33 482 3,175.62 minus Total 1031.88 DR DR 0.00 Total credits. (Total payable credits). [Penalties.. Arrears interest.. Balance Due assessment.. Balance due.... DR DR 0.00 from this 0.00 DR $-682 Cassandra's Income Confirmation Letter: Jackson Peters Human Resources Manager University of Alberta 116 St and 85 Ave Edmonton, Alberta TOG 2R3 November 28, 2021 To Whom This May Concern, This letter is to confirm that Cassandras Hamilton is an employee of the University of Alberta Bookstore. Cassandra has been working in a part-time position since September 15th 2020. Her annual salary is 22,020 per annum. If there are any questions or concerns, please feel free to call me at 780-452-3216. Thank you, Jackson Peters Calculate Jesiah's Monthly Income: Number (1 mark) Calculate Cassandra's Monthly Income (assume she is paid equally each month of the year): Number (1 mark) Calculate their assets and liabilities: (Do not leave any blank. Enter "0" if applicable. ASSETS VALUES Property Number (1 mark) Bank Account Number (1 mark) Land Number (1 mark) Tundra Number (1 mark) Investments Number (1 mark) Other Number (1 mark) Total Assets: Number (1 mark) VALUES MINIMUM PAYMENT LIABILITIES Mortgage Number (1 mark) Number (1 mark) Loan Number (1 mark) Number (1 mark) Costco Mastercard Number (1 mark) Number (1 mark) RBC Visa Number (1 mark) Number (1 mark) Bay credit card Number (1 mark) Number (1 mark) Capital One Card Number (1 mark) Number (1 mark) Total Liabilities: Number (1 mark) Calculate Net Worth from lender perspective: Number (1 mark) In reviewing their current financial situation, you would recommend that the Hamiltons also consolidate their consumer debts along with their renovation request Calculate the consolidation loan at 5.9% for 5 years. Monthly loan payment: Number (1 mark) Calculate Jesiah and Cassandra's GDS: Number %(1 mark) Calculate Jesiah and Cassandra's TDS: Number %(1 mark) Do you approve the loan?(1 mark) O Yes O No You recommend to Jesiah and Cassandra that they consider using the Investment asset as collateral to reduce the interest rate on their loan from by 2%. Julia thinks this may be a good idea, calculate the loan payment at at this new rate. Number How does this change their TDS calculation? Number % You recommend to Jesiah and Cassandra that they consider using the Investment asset as collateral to reduce the interest rate on their loan from by 2%. Julia thinks this may be a good idea, calculate the loan payment at at this new rate. Number How does this change their TDS calculation? Number They agree to use the Investment asset as collateral. What documentation is required? Obtain a statement, make a note in your file that you are taking as collateral. Recent statement of investment account. Register a message on your computer system for the investment account that it is taken as collateral for this loan. Obtain a statement, verify the total, and secure collateral for the loan following your financial institution's processes. If you were to consider Cassandras income with the intended increase of 2%, what would you require in order to use for your file? Get her last two years NOAs and take the average. O A new letter confirming her new income total. Call her employer to confirm and verify the raise. Write a note on her existing letter that has been provided. Be sure to date and sign your name. What information to you need to ensure that you payout all debt correctly? What if anything will you need to prepare? Only payout letters are required. O Payout letters, cut-up credit cards, and confirmed outstanding balances. Payout Letters and Cut-up credit cards Confirmation of all balances of accounts being consolidated O Cut-up credit cards