Mohammed and his wife have appied for a $450,000 mortgage to be amortized over 25 years at a fixed rate of 2.8% and a term of 5 years. Payments will be monthly. The Bank of Canada benchmark 5-year fixed insured mortgage rate is 5.25%. The couple expect monthly heating and property taxes will amount to $600. Their combined gross monthly income is $12,000. What is their Gross Debt Service (GDS) ratio? (A) 27.35% (В) 29.41% (C) 26.38% (D) 22.37%
