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b) Sally is looking to put the maximum down payment on the condo as she wants a conventional mortgage. If the bank accepts her ratios,

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b) Sally is looking to put the maximum down payment on the condo as she wants a conventional mortgage. If the bank accepts her ratios, and approves her for a mortgage, she is looking to make an offer of $200,000 on the condo. Calculate her down payment. Calculation: (.5 mark) TABLE C Tax-Free Savings Account (TFSA): Annual Limits Years Annual Limit Years Annual Limit Year started 2009 - 2012 $5,000/year 2016 - 2018 $5,500/year 2013 - 2014 $5,500/year 2019 - 2020 $6,000/year 5 000 2015 $10,000/year 2021 S ' [Year (assume as 5 not yet announced) c) Sally made a Registered Retirement Saving Plan (RRSP) contribution in January 2020 to claim as a deduction on her 2019 personal income tax return. She knew how much to contribute based on her Canada Revenue Agency (CRA) Notice of Assessment, which shows her the RRSP deduction limit (i.e. how much she can contribute). Sally does not have any RRSP carry- forward amount as she always maximizes her annual contribution. Rather than rely on her Notice of Assessment from the government, she would like to know how to calculate the contribution amount and has asked you for your help. Show Sally how you would calculate her 2019 RRSP contribution. Also, show her how you calculate her expected refund from making this RRSP contribution based on her marginal tax rate. She is very excited to know this information as she just filed her tax returns before the revised deadline and is expecting a refund shortly. (Ignore Non-Refundable Tax Credits) (see Tables A, D) Calculate the 2019 RRSP contribution: {.5 marks) Calculate the refund: (.5 marks) TABLE D Registered Retirement Savings Plan [RRSP]: Annual limits Formula for RRSP contribution limit: 18% of your previous year's earned income less your previous year's pension adjustment to an annual maximum. 2018 $25,230 2019 $25,500 2020 $27,230 2021 $27,830 TABLE B 2019 Federal Basic Personal Amount and Quebec Basic Personal Amount 2019 Federal Basic Personal Amount 2019 Quebec Basic Personal Amount $12,059 $15,259 Tax rate 15% Tax rate 15% Mini-Case D: [3 marks) Sally skipped a few years in high school as she was always the smartest in the class. Everyone knew she would be successful, and her friends were excited for her when they found out that she would be making an offer on a condo. She was waiting for the bank to get back to her as she just submitted her application for a mortgage. Her gross annual income is $100,000 and has been the same for the last 3 years due to the salary freeze at her company. The property that she is looking to purchase would result in monthly heating costs of $275, condo fees of 51,775 per year, while her annual property taxes would be $3,750. Her only debt is a car loan of $950 per month. a) Calculate Sally's monthly mortgage payment if her Total Debt Service (TDS) ratio is 39%? Calculation: (1 mark) TABLE A 2019 Combined Federal and Quebec Personal Income Tax Brackets and Tax Rates 2019 Taxable Income 2019 Tax Rates 2019 Taxable Income 2019 Tax Rates first $43,790 27.53% over $95,259 up to $106,555 45.71% over $43,790 up to 32.53% over $106,555 up to $47,630 $147,667 47.46% over $47,630 up to 37.12% over $147,667 up to $87,575 $210,371 49.97% over $87,575 up to $95,259 41.12% over $210,371 53.31%d) Sally just turned 23 years old on October 1, 2020. She has never made any Tax-Free Savings Account (TFSA) contributions to date. If the bank does not approve her mortgage, she will maximize her TFSA contributions by using funds that she had earmarked for the down payment. What is the maximum amount that she could put in her TFSA (including carry- forward amounts}? {see Table C) Calculate the maximum TFSA: (.5 marks} TABLE E Home Buyer's Plan (HBP) Withdrawals made after March 19, 2019 Withdrawals made prior to March 19, 2019 Withdraw up to $35,000 per borrower and up to Withdraw up to $25,000 per borrower and up to $70,000 per couple. $50,000 per couple. 15 years to pay back the amount withdrawn 15 years to pay back the amount withdrawn

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