Solution-Calculate the down payment on the home

Calculate the down payment on the home

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Reference no: EM133119733

It is February 18, 2022, Asra and Yadi are looking to buy their first home but prices during this pandemic seem especially high. To come up with the down payment, they will need to dip into their Registered Retirement Savings Plan's (RRSP's) to take advantage of the Home Buyer's Plan (HBP). To date, Asra has made a total of $27,000 in contributions to her RRSP while Yadi has made $24,000 in total to his. Their RRSP's have grown over the years and the market value for Asra's RRSP is $38,763 while Yadi's RRSP is valued at $31,222. They are now looking to withdraw from their RRSPs under the HBP, for the which they will use as a total down payment on their dream home. They have turned to you for some help to their questions.

Note: Asra and Yadi reside in Quebec, Canada.

Calculate if the down payment on the home through the Home Buyer's Plan would qualify for a conventional mortgage (they are looking to purchase a property on the market for $331,000).

TABLE E

Home Buyer's Plan (HBP)

Withdraw up to $35,000 per borrower and up to $70,000 per couple.
15 years to pay back the amount withdrawn

Reference no: EM133119733

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Calculate the down payment on the home

Reference no: EM133119733

Reference no: EM133119733

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