Question 3 (13 marks): Jane wishes to buy a house for 150,000 and arrange for the maximum possible conventional loan (hint: what is the LVR?). The lending value assessed by the lender is the same as the purchase price. Jane wants the loan to be amortized over 25 years with monthly payments. Mortgage contract rate j2=4.56% and Bank of Canada 5-year posted fixed rate j2 =8%. Property taxes for the house are 1200/year and heating costs are estimated 60/month. Jane and her husband make a combined income of 60,000 a year. For the couple, they have to make a car loan payment of 350/month and credit card loan payment of 250/month. (a) (2 marks) For qualification purpose, what mortgage rate to use? Why? (b) (4 marks) What are the GDS and TDS ratios for the couple? (c) (1 mark) Based on (a), will the couple qualify for the mortgage? (d) (4 marks) What is the maximum size of the loan they qualify for using GDS? and using TDS? (e) (2 marks) Suppose they've saved 60,000 for down payment, what is their affordable house purchase price using GDS? and using TDS