Mini$-$Case A $(6$ marks$)$

Cheryl and Nabil are meeting for the first time with a financial planner at their financial

institution. They are hoping to purchase their first home by early $2025.$ Both have

recently turned $28$ and have been living rent$-$free with Nabil's parents since their

graduation $3$ years ago. They were fortunate to immediately find employment in their

field of choice and this, combined with their reduced cost of living, has permitted them

to focus on their TFSA and RRSP savings plans.

Part $1(1$ mark $-\frac{1}{2}$ mark each$)-$ Identify your source.

i$.$ Given changes to the Home Buyer's Plan in the Federal Budget released on April

$16,2024,$ what would be the combined maximum the couple could withdraw

from their RRSP as first$-$time home buyers?

ii$.$ If they withdraw funds late in $2024,$ given the updated rules, when would they be

required to start repaying these funds?

Source:

Part $2(1$ mark$)$

What government savings plan specifically targeting first$-$time home buyers has the

couple not yet taken advantage of$?$ Provide a brief description and identify your source.

Source: Part $2(1$ mark$)$

What government savings plan specifically targeting first$-$time home buyers has the

couple not yet taken advantage of$?$ Provide a brief description and identify your source.

Source:

Part $3(1$ mark$)$

As first$-$time home buyers, the couple would qualify for a $30-$year amortization period on

an insured mortgage if they buy a newly constructed home. Identify one advantage and

one disadvantage of doing so$.$ Part $4(2$ marks$)$

Assume the couple purchases a home with a $$400,000,$ fixed$-$rate mortgage $($fixed$-$rate mortgages are compounded semi$-$annually in Canada$)$ and they opt for monthly payments, a term of $5$ years at a rate of $6\mathrm{.}2\%,$ and an amortization period of $25$ years.

All else equal, if they had chosen instead an accelerated bi$-$weekly payment, how much interest would they save over the life of the mortgage? Round to the nearest dollar.

$\backslash$table$[[\backslash$table$[[$Total Interest with Monthly$],[$Payments$]],\backslash$table$[[$Total Interest with Accelerated Bi$-$weekly$],[$Payments$]]],[$Calculation$,$Calculation$],[,],[$Total Interest Savings,$]]$

Part $5(1$ mark$)$

Cheryl and Nabil believe it's beneficial to have easy access to funds should they need it$.$ They have opened $3$ lines of credit, but only use one. Why is having unused lines of credit not a good idea for anyone when applying for a mortgage? State your source.

Impact of Unused Lines of Credit on a Mortgage Application

Source:

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$1739$ mots

Anglais $($Canada$)$

FocusSection II: $2$ Mini$-$Cases $(15$ marks$)$

Please write your response in the space provided and highlight and bold it$.$

Mini$-$Case A $(6$ marks$)$

Cheryl and Nabil are meeting for the first time with a financial planner at their financial

institution. They are hoping to purchase their first home by early $2025.$ Both have

recently turned $28$ and have been living rent$-$free with Nabil's parents since their

graduation $3$ years ago. They were fortunate to immediately find employment in their

field of choice and this, combined with their reduced cost of living, has permitted them

to focus on their TFSA and RRSP savings plans.

Part $1(1$ mark $-\frac{1}{2}$ mark each$)-$ Identify your source.

i$.$ Given changes to the Home Buyer's Plan in the Federal Budget released on April

$16,2024,$ what would be the combined maximum the couple could withdraw

from their RRSP as first$-$time home buyers?

ii$.$ If they withdraw funds late in $2024,$ given the updated rules, when would they be

required to start repaying these funds?

Source: