Calculate the down payment on the home

Assignment Help Finance Basics
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  • 15 years to pay back the amount withdrawn 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

Questions Cloud

Net family property determination : What type of property/debt is excluded from 'net family property' determination?
Compute the value of the house : Dylan and Kaiyan married and moved into the house that Dylan already owned). He paid $200,000 for the house a few years before they married).
Conduct and properly document risk assessment : Find and evaluate appropriate published information to remain up-to-date about threats, vulnerabilities and patches
What crypto firm accepts paypal : What crypto firm accepts paypal? What are the regulations if accepted?
Calculate the down payment on the home : It is February 18, 2022, Asra and Yadi are looking to buy their first home but prices during this pandemic seem especially high.
Explain in your own words what Investment Climate is : Explain in your own words what "Investment Climate" is. Which factors influence a country's investment climate
Find the irr for the company project : Find the IRR for the company's project. The initial outlay for the project is $414,700. The project will produce the following after-tax cash inflows of
Prepare a statement of cash flows for July : Paid the following: wages expense, $7,700; truck expense, $2,300; utilities expense, $1,700; Prepare a statement of cash flows for July
Produce the same after-tax cash : The project will produce the same after-tax cash inflows of $420,802 per year at the end of the year. Round the answer to two decimal places.

Reviews

Write a Review

Finance Basics Questions & Answers

  How much accrued interest must be paid to the? seller

?A(n) 18?-year bond has a coupon of 8?% and is priced to yield 15?%. Calculate the price per? $1,000 par value using? semi-annual compounding. If an investor pu

  Why does the fed monitor the economy

Why does the Fed monitor the economy? - What actions can the Fed take to affect the overall health of the economy?

  Capital budgeting project

El Dorado Storage has the following projections for Year 1 of a capital budgeting project.

  Differences between external and internal respiration

Consider the differences between external and internal respiration, and the concentration gradient of oxygen and carbon dioxide at both sides of the membranes.

  Weighted average cost of capital for the firm

The company Ventas y Distribución S.A has the following information:

  What is the price you would pay for stock now

Credenza Industries is expected to pay a dividend of $1.20 at the end of the coming year. It is expected to sell for $62.00 at the end of the year. If its equity cost of capital is 8%, what is the price you would pay for this stock now?

  Important information business in future

Suppose you're a business executive in the year 2015. How is the business world different than it was when you were a master's degree student in 2006.

  What is the expected return if the market return

What is the expected return if the market return on asset X is 15 percent, its beta is 1.5, and the risk free rate is 5 percent?

  Issuing an audit opinion for the company

Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company's financial reports.

  If you deposit 1 at the end of each of the next ten years

if you deposit 1 at the end of each of the next ten years and these deposits earn interest at 10 percent what will the

  Calculate the present value of a stream of cash flows based

when the genesis and sensible essential teams held their weekly meeting the time value of money and its applicability

  How much would you be willing to invest today

You will receive five $25,000 annual payments, beginning in 40 years. How much would you be willing to invest today if you desire a return of 12%?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd