Calculate the monthly mortgage payment

Reference no: EM133430290

Question: This assignment requires that you calculate the costs of buying a house, including the ongoing mortgage costs. You are to assume that you inherit $150,000.00 and use these funds to contribute to all closing costs and down payment.

1) Look online (www.realtor.ca or any house-hunting site will work) for a house/condo that you would like to buy. For the purpose of this assignment, the house/condo must be in Ontario. Attach a screenshot showing the price, description, and location of the house/condo. Please do not attach a link instead of screenshots. Once a home sells, the link no longer works.

2) Calculate the total closing costs (include a table with costs and a total) required to close the purchase of your new home (a list of appropriate closing costs can be found in your textbook in chapter 7 (Exhibit 7.4 may help you with values)). You may estimate the costs, except land transfer taxes which can be calculated using the link below. I am more concerned with you recognizing the various costs involved. The website to use to determine land transfer taxes is https://www.ratehub.ca/land-transfer-tax

3) Subtract the closing costs in #2 from the $150,000.00 that you have inherited to determine the amount that you have available for a down payment.

4) Calculate the amount that you require to buy the house (the amount you need as a mortgage).

5) Calculate the monthly mortgage payment that will be required, using a 25 year amortization period. You can use the following site for this step: There are rates provided in the mortgage calculator; pick any rate that works for your loan. Provide a screenshot of the values used to calculate your payment.

6) Calculate the minimum salary that would be needed to qualify for the mortgage based on your GDS ratio. Assume that annual property taxes are 1.5% of the cost of the house, and heating costs are $150 monthly.

7) Presentation: 10 marks are allocated towards the professionalism of your assignment. This includes, but is not limited to: organization, spelling/grammar, structure, formatting, readability, etc. References are required.

Reference no: EM133430290

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