Illustrate how GDS and TDS ratios as well as cash flow are important in calculating what size mortgage a person can afford.Use the following example to illustrate your conclusion.
Hannah earns an annual salary of $72 000 and has following monthly expenses.

Hannah has $31 000 saved in her RRSP.There is a new condo development going up in her area and she hopes to be able to purchase her own place.The unit she has her heart set on costs $310 000 and they advertise a mortgage rate of 3.5%,compounded semi-annually,for this development.The property taxes will be $170 per month,heating costs $80,and condo fees $300.

Question

Illustrate how GDS and TDS ratios as well as cash flow are important in calculating what size mortgage a person can afford.Use the following example to illustrate your conclusion.
Hannah earns an annual salary of $72 000 and has following monthly expenses.
  
Hannah has $31 000 saved in her RRSP.There is a new condo development going up in her area and she hopes to be able to purchase her own place.The unit she has her heart set on costs $310 000 and they advertise a mortgage rate of 3.5%,compounded semi-annually,for this development.The property taxes will be $170 per month,heating costs $80,and condo fees $300.

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The Answer of Illustrate how GDS and TDS ratios as well as cash flow are important in calculating what size mortgage a person can afford.Use the following example to illustrate your conclusion.
Hannah earns an annual salary of $72 000 and has following monthly expenses.
  
Hannah has $31 000 saved in her RRSP.There is a new condo development going up in her area and she hopes to be able to purchase her own place.The unit she has her heart set on costs $310 000 and they advertise a mortgage rate of 3.5%,compounded semi-annually,for this development.The property taxes will be $170 per month,heating costs $80,and condo fees $300.

Illustrate How GDS and TDS Ratios as Well as Cash