Nate and Kate are looking to buy their first home but prices during this period are still high. They are looking to purchase a condo that is on the market for $420,000.

Nate and Kate are going to the Royal Bank of Canada (RBC) for their potential mortgage. Calculate the Gross Debt Service (GDS) ratio: Nates gross annual salary is $95,750, while Kates is $98,650. The property they are looking to purchase would result in monthly heating costs of $520, condo fees of $2,380 per year, while their annual property taxes would be $2,060. Nates only debt is a car loan of $275 per month, while Kate has a student loan of $95 per month. Calculate the GDS ratio using a monthly mortgage payment of $3,600.

TABLE E Home Buyer's Plan (HBP) - Withdraw up to $35,000 per borrower and up to $70,000 per couple. - 15 years to pay back the amount withdrawn