Financial Planning Case 1: Personal Budgeting and planning to buy a House: For this case study you may use your own fina
Posted: Wed Jul 06, 2022 6:41 pm
Financial Planning
Case 1: Personal Budgeting and planning to buy a House:
For this case study you may use your own financial goalsand information or produce a fictitious personal scenario. If youchoose the latter the information must be reasonably complete andreasonable. You are required to provide the following:
Part 1. Financial Planning:
• Describe your current personal and financial condition;
• Provide a comprehensive list of long-term and shorter-termgoals;
• Assess financial resources, producing a thorough accountingand assessment of net worth, income and expenditures;
• Balance cash flows for the next year;
• Develop and describe implementation and controlstrategies.
Part 2. Debt Strategy - Mortgage Finance:
As an extension the financial plan above, provide a strategy forpurchasing a house / apartment after you graduate and find work.Make any reasonable assumptions necessary to complete theassignment, but you are required to:
• Identify the home you wish to buy, including location, costand any financing issues. Include a broker or MLS description;
• Explain the costs and requirements of a high-ratio mortgage(90%) versus a lower ratio (80%), focusing on the lifetime cost ofthe mortgage and the monthly funding requirement and debt/serviceimplication; • Identify a prospective lender and describe theexpected costs, conditions and features of the proposedmortgage;
• Assess your suitability for the proposed mortgage and providethe GDS, TDS and maximum mortgage calculations;
• Explain your choice of fixed / variable rate mortgage; closed/ open mortgage, amortization period and any other mortgagefeatures you feel are important. What mortgage rate will you haveto pay, and how have you calculated this?
Case 1: Personal Budgeting and planning to buy a House:
For this case study you may use your own financial goalsand information or produce a fictitious personal scenario. If youchoose the latter the information must be reasonably complete andreasonable. You are required to provide the following:
Part 1. Financial Planning:
• Describe your current personal and financial condition;
• Provide a comprehensive list of long-term and shorter-termgoals;
• Assess financial resources, producing a thorough accountingand assessment of net worth, income and expenditures;
• Balance cash flows for the next year;
• Develop and describe implementation and controlstrategies.
Part 2. Debt Strategy - Mortgage Finance:
As an extension the financial plan above, provide a strategy forpurchasing a house / apartment after you graduate and find work.Make any reasonable assumptions necessary to complete theassignment, but you are required to:
• Identify the home you wish to buy, including location, costand any financing issues. Include a broker or MLS description;
• Explain the costs and requirements of a high-ratio mortgage(90%) versus a lower ratio (80%), focusing on the lifetime cost ofthe mortgage and the monthly funding requirement and debt/serviceimplication; • Identify a prospective lender and describe theexpected costs, conditions and features of the proposedmortgage;
• Assess your suitability for the proposed mortgage and providethe GDS, TDS and maximum mortgage calculations;
• Explain your choice of fixed / variable rate mortgage; closed/ open mortgage, amortization period and any other mortgagefeatures you feel are important. What mortgage rate will you haveto pay, and how have you calculated this?