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 Identify your source.

1. 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?
2. If they withdraw funds late in 2024, given the updated rules, when would they be required to start repaying these funds.

i.	Maximum combined HBP withdrawal
ii.	Repayment date of funds withdrawn in 2024

Source:

Part 2

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.

Plan	Description

Source:

Part 3

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.

Advantage
Disadvantage

Part 4

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 6.2%, 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.

Total Interest with Monthly Payments	Total Interest with Accelerated Bi-weekly Payments
Total Interest saved

Part 5)

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: