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 $25,000. 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 Hamiltons house is valued at $400,000. The mortgage was for $352,000 with a 5-year term, amortized over 25 years at 3.37%.

Please Calculate the Monthly Mortgage Payment:

They have made 32 payments on the mortgage. Please calculate the balance owing on the loan.

This branch approved the mortgage. Taxes are $333 a month and heating is estimated at $200. They currently have $5,000 in a joint savings account at the branch. Both 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 $77,500. Eventually Jesiah would like to build a cabin on the property but realizes that this is a long term-goal. Jesiah pays about $65 a month on the taxes. Cassandra also has recently received an expensive painting from her grandmother valued at $47,500 with a certificate of authenticity.

Jesiah, 29, has been working for RV World for 6 years. He grosses $88,940 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 $22,480 per year. Her manager informed her she was going to receive a 4% increase next month.

49 months ago Jesiah bought a Ram for $44,500 and financed it with a loan (from a competitor) for $40,100 at 4.11% for 5 years compounded monthly.

What is the monthly truck payment?

What is the balance owing today for the truck?

The current value of the Ram is estimated to be $8,100.

Equifax shows he has never missed a payment and confirms that there are 11 months remaining on the installment loan. Ratings on their credit cards from Costco ($2,000 credit limit)R2, RBC VISA ($3,000 credit limit) are R4, and they have a Capital One MasterCard with a R4 rating(credit limit $4,500). 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 $2,500 but nothing is currently owing.

Jesiah recently received an inheritance in the amount of $25,000 . Currently he has it invested in a Bond Mutual Fund. 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 purchase a cabin.

Notice of Assessment for Jesiah Hamilton Tax year 2020

Line	Description	$ Amount
150	Total Income Deductions from total income	$97,389 $15,582
236	Net Income Deductions from net income................................	$81,807 0
260	Taxable Income	$81,807
350	Total federal non-refundable tax credits.	$3,613
6150	Total Alberta non-refundable tax credits.	$2,170
420	Net Federal Tax.	0.00
421	CPP contributions.	4,207.50
435	Total Payable	4,207.50
437	Total Income Tax Deducted	$25,278.36
482	Total credits (Total payable minus Total credits)................................................................ DR [Penalties............................................................ DR Arrears interest................................................... DR Balance Due from this assessment......................................................... DR Balance due........................................................ DR	3,175.62 1031.88 0.00 0.00 0.00 $1,791

Notice of Assessment for Jesiah Hamilton Tax year 2021

Line	Description	$ Amount
150	Total Income Deductions from total income	$104,693 $16,227
236	Net Income Deductions from net income................................	$88,466 0
260	Taxable Income	$88,466
350	Total federal non-refundable tax credits.	$3,346
6150	Total Alberta non-refundable tax credits.	$2,490
420	Net Federal Tax.	0.00
421	CPP contributions.	4,207.50
435	Total Payable	4,207.50
437	Total Income Tax Deducted	$26,451.33
482	Total credits (Total payable minus Total credits)................................................................ DR [Penalties............................................................ DR Arrears interest................................................... DR Balance Due from this assessment......................................................... DR Balance due........................................................ DR	3,175.62 1031.88 0.00 0.00 0.00 $-530

Cassandra's Income Confirmation Letter:

Jackson Peters

Human Resources Manager

University of Alberta

116 St and 85 Ave

Edmonton, Alberta

T6G 2R3

October 16, 2022

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 15^th 2020. Her annual salary is 22,480 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: (1 mark)

Calculate Cassandra's Monthly Income(assume she is paid equally each month of the year): (1 mark)

Calculate their assets and liabilities: (Do not leave any blank. Enter "0" if applicable.)

ASSETS	VALUES
Property	(1 mark)
Bank Account	(1 mark)
Land	(1 mark)
Ram	(1 mark)
Investments	(1 mark)
Other	(1 mark)
Total Assets:	(1 mark)

LIABILITIES	VALUES	MINIMUM PAYMENT
Mortgage	(1 mark)	(1 mark)
Loan	(1 mark)	(1 mark)
Costco Mastercard	(1 mark)	(1 mark)
RBC Visa	(1 mark)	(1 mark)
Bay credit card	(1 mark)	(1 mark)
Capital One Card	(1 mark)	(1 mark)
Total Liabilities:	(1 mark)

Calculate Net Worth from lender perspective: (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 6% for 5 years.

Monthly loan payment: 1 mark)

Calculate Jesiah and Cassandra's GDS(use whole numbers no percentages): %(1 mark)

Calculate Jesiah and Cassandra's TDS(use whole numbers no percentages): %(1 mark)

Do you approve the loan?

		No
		Yes