Sally skipped a few years in high school as she was always the smartest in the class. Everyone knew she would be successful, and her friends were excited for her when they found out that she would be making an offer on a condo. She was waiting for the bank to get back to her as she just submitted her application for a mortgage. Her gross annual income is $100,000 and has been the same for the last 3 years due to the salary freeze at her company. The property that she is looking to purchase would result in monthly heating costs of $275, condo fees of $1,775 per year, while her annual property taxes would be $3,750. Her only debt is a car loan of $950 per month.

a) Calculate Sallys monthly mortgage payment if her Total Debt Service (TDS) ratio is 39%?

b) Sally is looking to put the maximum down payment on the condo as she wants a conventional mortgage. If the bank accepts her ratios, and approves her for a mortgage, she is looking to make an offer of $200,000 on the condo. Calculate her down payment.