Like every Canadian couple, Monir and Jackie carry quite a lot of debt, despite their high income. Both lease their cars at a combined cost of $2,300 a month. Their recently-built house carries a $1,000,000 mortgage at a rate of 2.4%, 5-year term, with monthly payments over 25 years. Theirs was not a conventional mortgage, but a high-ratio mortgage at a 90% loan-to-value ratio. Other monthly debt charges (line of credit, credit card, etc.) amount to $5,000 a month. Municipal taxes and heating costs amount to $900 a month. They were First Time Home Buyers.

Part 1 - The couple chose to add the CMHC mortgage loan insurance to their $1,000,000 fixed rate mortgage. However, had they paid the insurance off up-front, how much total interest would they have saved over 25 years?

part 2 - The couple drew down $80,000 from their RRSPs on July 15 of 2021 under the Home Buyers Plan (Monir had been an employee in a prior career and had made contributions). Identify 4 requirements they would have had to meet to qualify for the HBP.

part 3 - What is the couples Total Debt Service Ratio (TDS)? Ignore Monirs capital gains/losses.

part 4 - Monir drives a Range Rover that, at the time of signing of the lease, sold for $125,000. Assuming Monir made a $5,000 down payment. Other than a low down payment, identify two advantages of leasing versus purchasing a car.