Management and Organizational Studies 2277A/B Chapter Notes - Chapter 7: Fixed-Rate Mortgage, Mortgage Loan, Mortgage Insurance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

How much can you afford first determine how much you can afford to pay per month for a mortgage based on your budget. Most cases, will provide you with mortgage loan if your gross debt service (gds) ratio is no more than 32% Gds = monthly mortgage related debt payments including mortgage loan repayments, heating costs, property taxes, half of condominium fees divided by your total monthly gross house hold income. Total debt service (tds) = your mortgage-related debt payments plus all other consumer debt payments divided by your total monthly gross house hold income. Affordable down payment can determine max down payment be estimating the mv of the assets you are willing to convert to cash for a down payment and for transaction costs (closing for ex) incurred when obtaining a mortgage. Home buyers plan (hsb) = allows you to borrow up to 25 000 from your rrsp, interest free.