1. Joe and Sarah would like to purchase a condo property and they need your help to know if they will be approved to get a mortgage loan from Bank of HOPE. They have $30000 in their saving account but they are willing to only use $28,000 for down payment. Joe has a salary of $ 40,000 per year and Sarah is making $ 31,000 annually. The property is situated in La Salle and currently is for sale for $ 150, 000. The municipal and school taxes are $ 3200 annually and heating is $ 1300 per year. Bank of HOPE is offering them a mortgage interest of 9.5% and amortization period of 25 years. The monthly condo fees are $55. They dont have any debts (Lucky couple!)

Use the CMHC premium table if necessary!

GDS=32%

TDS=40%

Calculate the GDS and TDS ratio of your clients and let them know if they are qualified to get a mortgage loan?

SHOW YOUR CALCULATION: