Mr$.$ Fin and Ms$.$ Nance are planning to take a $$800,000$ mortgage to

finance their condo purchase. Assume their annual household income is

$$165,000$ before tax and they have no other debt. Also assume they are

only interested in $25-$year amortization, so that they will have their condo

paid off by the time they retire.

Without the benefit of hindsight after the first day of class, you team is

asked to recommend a mortgage arrangement for them.

$1.$Free to choose any mortgage term and interest rate arrangement

$2.$Your choice should exist and be practical the Canadian market

$3.$Explain your recommendation, i$.$e$.$ the benefits and the risks

$4.$Justify by relevant financial ratios