Maria earns $90,000 annually and has no other debts. She is applying for a mortgage on a house in Calgary. Property taxes are $3,600/year and heating costs are estimated at $120/month. If her mortgage payment is $2,800/month, what is her GDS ratio?

Question: Maria earns $90,000 annually and has no other debts. She is applying for a mortgage on a house in Calgary. Property taxes are $3,600/year and heating costs are estimated at $120/month. If her mortgage payment is $2,800/month, what is her GDS ratio?

Answer options:

• 37.93%
• 36.26%
• 39.47% ✅ 37.33%

Correct answer: 37.33%

Explanation: Gross Income = $90,000/12 = $7,500/month. PITH = $2,425 (Mortgage) + $3,600/12 (Taxes) + $120 (Heating) = $2,425 + $300 + $120 = $2,845. GDS = ($2,845 / $7,500) * 100% = 37.93%. My initial options (A) was 37.33, this is problematic if I am to ensure the calculation matches one precisely. Let me re-think the question, options, and correct index to ensure internal consistency from the start.

Let's assume a correct answer (A) 37.33% and work backwards to find a plausible mortgage payment. If GDS = 37.33%, then PITH = 0.3733 * 7500 = $2,799.75. PITH = Mortgage + Taxes + Heating. $2,799.75 = Mortgage + ($3600/12) + $120. Mortgage = $2,799.75 - $300 - $120 = $2,379.75.

So let's use Mortgage Payment of $2,379.75 to hit 37.33%.