NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

4.8/5

solution

Megan and Sean are looking for their first home in Ontario. They are in their late 20s and have been married for three years. They still have a small amount left to pay towards their student and car loans. They do not have any children but plan to in the near future. Both Megan and Sean have steady stable jobs with good advancement opportunities. They are making housing savings. They do not want to use RRSP Home Buyer’s Plan for down payment.

Use the financial information given below and information you obtain from the Internet to answer the questions (1 – 9 below). Use the Case Study Answer Template to write up your answers.

Financial Information

Combined Gross Annual Salary $75,000 After-tax salary $60,000

Monthly Budget

Rent 800
Food 400
Entertainment 300
Clothing/Laundry 400
Telephone/Cable/Internet 200
Car loan payment 400
Car expenses 200
Insurance – life, car 220
Insurance – apartment 30
Household (pet-caring, printer) 100
Student loan payment 300
Personal expenses 150
Miscellaneous 150
Savings 1,350*
Total 5,000

* Savings– usually each month they contribute $100 to their emergency savings, $300 to their RRSPs and $950 to their house savings

Net Worth

Assets Liabilities
Chequing Account 1,500 Car 6,000**
Emergency Savings 6,000 Student Loans 8,000***
Car 14,000
RRSPs 15,000
House Savings 45,000
Total Assests 81,500 Net Worth 67,500

** They will be finished paying for the car loan in 16 months
*** They will be finished paying for the student loans in 28 months

Bank: CIBC Date:

Mortgage Type

6 mos

1 yr

2 yr

3 yr

4 yr

5 yr

7 yr

10 yr

Fixed rate – closed

NA

3.2

2.9

3.7

4.3

4.9

6

6.19

Fixed rate -open

7.25

6.4

NA

NA

NA

NA

NA

NA

Variable – closed

NA

NA

NA

2.5

NA

2.5

NA

NA

Variable – open

NA

NA

NA

NA

NA

4.3

NA

NA

Variable – capped

NA

NA

NA

NA

NA

NA

NA

NA

Broker name: Date:

Mortgage Type

6 mos

1 yr

2 yr

3 yr

4 yr

5 yr

7 yr

10 yr

Fixed rate – closed

3.2

2.9

3.7

4.3

4.9

6

6.19

Variable interest rate

NA

NA

NA

2.5

NA

2.5

NA

NA

What term would you suggest? Why? What mortgage type do you think they should get (fixed vs variable; open vs closed? Why? Refer to Unit 05 files – Mortgage Financing Options for explanations.What source they should use for mortgage? Why?

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.

WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!