Illustrate How GDS and TDS Ratios as Well as Cash

question 54

Essay

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.

Understand the role and mechanisms of underwriting in the issuance of new securities.

Calculate and interpret margin requirements and their implications for investors' decisions and outcomes.

Recognize the regulatory framework governing securities markets, focusing on registration requirements and the implications for security issuance.

Understand the role and impact of electronic trading systems in financial markets.

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Definitions:

Community

A group of people living in the same place or having a particular characteristic in common.

Interplay

The way in which two or more things influence or affect each other.

Values

Positive abstractions that capture our sense of what is good and desirable.

Expectations

Beliefs or anticipations about future events or behaviors, often based on past experiences or societal norms.