Mark and Marla will be buying a house that will cost $1,400,000. They will be selling their current home for $800,000. The home has a mortgage balance of $22,000 and all expenses associated with sale will be $10,000. They will use the net proceeds as a down payment on the new house. They are able to get a mortgage rate of 3.15%. Their combined income is $190,000 gross. The property tax on the house will be $12,250 per annum. Marla still has a student loan on which she makes monthly payments of $300. a) Will they qualify for the mortgage under the stress test assuming the Bank of Canada rate is 4.50%? (5 marks) b) Assuming they do qualify: What is the monthly mortgage payment amount assuming a 25 year amortization period? (5 marks) c) How much faster will they pay off the mortgage if they make bi-weekly payments instead of monthly payments? (5 marks) d) At the end of 5 years they must renew their mortgage. Interest rates have sky rocketed and the renewal rate is 6%. What is the new monthly payment amount? (5 marks)