As much as it is an exciting time for both Luis and Louisa to buy their first home, they are constantly arguing about how the Home Buyers Plan (HBP) works. Both are convinced they are right. You, as their friend will decide who is right by selecting the correct answer below. Luis and Louisa have contributed to their

Registered Retirement Savings Plan (RRSP) for years and are now ready to withdraw from their respective RRSPs to participate in the Home Buyer's Plan (HBP) for their down payment. To date, Luis has made total RRSP contributions of $28,200, while Louisa has contributed $26,467. As of today, December 16, 2023, the market value of Luis' RRSP is at $32,725 while Louisa's is at $36,949. Based on their current RRSP accounts, what is the maximum amount they can withdraw for their total down payment on a house under the HBP?

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• 15 years to pay back the amount withdrawn

Select one:

a. $69,674

b. $64,325

c. $67,725

d. $70.000

e. $54.667

2. Josh went to CIBC for a mortgage and borrowed $300,000. He was incredibly disappointed to see how high-interest rates were and had no choice but to lock in at a rate of 4% compounded semi-annually with amortization over 25 years. Since his pay is deposited at the end of each month, Josh thought it best to time the mortgage payments with the same monthly end date. He is, however, wondering how many years he would have saved if instead he had signed up for accelerated weekly payments.

Select one:

O a.6.3 years

O b. 2.5 years

O c. 3.5 years

O d. 4 years

O e. 3.1 years

3. Diego knows that a credit score is a rating that indicates a person's creditworthiness. He also knows that the two most important credit score factors that affect a person's credit score are payment history and length of credit history. True or False?

Select one:

O True

False