Kyle and Julia are considering whether or not to buy a particular property valued at $1,000,000. They have $300,000 of their own funds to commit towards the purchase and they expect to incur an additional $60,000 in fees and stamp duty on the purchase itself. They are able to borrow at an interest rate of 6.6% per annum with interest compounded monthly. Loan repayments would be monthly with the first payment due at the end of the first month after purchasing the property. The term of the home loan is 30 years. They both work full-time earning a combined after-tax salary of $14,500 per month Question 1: How much is the monthly mortgage payment Kyle and Julia will be required to pay for their loan? You may use Formula 3 in the time value money spreadsheet provided with the course material. Hint: because the interest is compounded monthly, we need to use the number of months for the mortgage loan, not the number of years, when determining the regular payments to be made. We also need to use the monthly interest rate (6.6% /12 = 0.55%) If you prefer to use an online mortgage calculator, be careful here as they may have slight differences. This one would suit this exercise: http://www.nab.com.au/personal/loans/home-loans/loan-calculators/loan-repayments- calculator Provide your answer here $ 4853.81 Question 2: Will Kyle and Julia face mortgage stress at current interest rates? A loan affordability ratio is equal to the monthly home loan repayment divided by a couple's household after-tax monthly income. A key threshold for 'mortgage stress' is when the loan affordability ratio reaches 35%. Provide your answer here Loan affordability ratio: 33.47 % (2 decimal places) Kyle and Julia will not * experience mortgage stress. Question 3: After 1 year, the bank informs Kyle and Julia that $751665.18 is still owing on their loan. How much in total have Kyle and Julia paid in mortgage payments during the first year? mod/quiz/review.php?attempt=802388