Based on the topics we covered in class, you have to determine the maximum mortgage that you can
attain for a house. You have CAD $50000 that you can use for your down payment, and you need to
determine the maximum price for the house you are qualified to buy based on your income, tax expenses,
student loan and heating/cooling costs.
You will need to provide the appropriate calculations and list the final price of the house. You will also
need to calculate the following: if you qualify for the loan to value criteria, the maximum payment with
the gross debt service ratio and the maximum payment for total debt service ratio. Finally, you will need
a one paragraph summary of your findings that explains your results. Do not exceed more than 2 pages.
Use a 25-year amortization and an interest rate of 5 % compounded semi-annually for a five-year term.
Round your final answer to the nearest $100.
Your income, tax expense, student loan and heating/cooling costs will all be determined by your 9-digit
George Brown ID. The last 5 digits will be your annual income. If your last five digits begins with a 0, replace
the 0 with a 7.
Use the calculations below to help you determine the correct annual income, tax expenses, student loan
value and heating/cooling costs

Income Example
An example is as follows:
George’s George Brown ID number is 105161550.
The last five digits for the number above would be 61550.
His annual salary would then be $61550 per year. If George’s last five digits were 01550, you would replace
the 0 with a 7 and use that number as the annual salary. Therefore, it would change from 01550 to 71550.
$61550/12 = $5129.16666667 per month
Therefore, George earns $5129.16666667 per month