Ann lives on her own. She is currently renting but is ready to purchase her first home. As she knows that you are taking a Personal Finance course, she has turned to you for guidance before approaching the banks for a mortgage. Her monthly living expenses are $3,700.

Chequing account $3,500

Furniture $9,750

Car $23,500

RRSP investments: (Stocks) $111,650

Savings Account $5,750

Cash $50

Investments: Mutual Funds (bonds) $7,000

Student loan (3 years remaining) $12,000

Car loan (4 years remaining) $15,550

Credit card balance (unpaid balance after monthly minimum paid) $1,600

A. Ann's home that she is looking to purchase is on the market for $200,000. This is a good price, in a hot market. She knows that the home will sell fast and will sell for the asking price. How much would Ann need for a down payment on the home if she were to take a conventional mortgage?

B.If Ann wanted to take advantage of the Home Buyer's Plan (HBP) in November 2019, what is the maximum amount that she could withdraw from her Registered Retirement Savings Plan (RRSP)? ( Hint: the amount under the HBP increased in March 2019, it is no longer $25,000). What is the minimum RRSP repayment amount required under the HBP that Simone must make?

C.If Ann only provides the HBP amount as a down payment, she would (have or not have) _________________ a conventional mortgage and would therefore (require or not require) _____________________ default insurance.