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a) They are looking to you to help them calculate the amount needed to cover their Transfer

Duties under the city of Montréal and CMHC mortgage loan insurance (they know that they

have the option to pay the mortgage loan insurance as either a lump sum or they can

increase their mortgage payments; they decided to pay the CMHC as a lump sum).

(2 marks)

Show calculations for the CMHC mortgage loan insurance: (1 mark)

Show calculations for the Transfer Duties: (1 mark)

b) Leanne and Fritz believe the only way they can cover the Transfer Duties, the CMHC

mortgage loan insurance, down payment and new furniture is by with drawing funds from

their Registered Retirement Savings Plan (RRSP) under the Home Buyer's Plan (HBP).

Calculate the maximum amount they can each withdraw from their respective RRSPs.

Leanne's RRSP market value is $36,980 and Fritz's is $29,459. (See Table D). (.5 marks)

Calculation for RRSP withdrawal under the HBP: (.5 marks)

eConcordia Concordia May not be copied or duplicated

without the of the owner.

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