• Mary is 32 and wants to buy her first home
• A graduate of the Algonquin school of business - she loved the Investment Planning course J
• Has $80,000 in RRSPs (RBC Bond Fund), $70,000 in her TFSA (all in Royal Bank common shares), and $10,000 of cash in bank
• Earns $100,000 of salary per year
• Only debt is a $300/month car loan
• Looking at a $350,000 condo and she is thinking of a 20% down payment of $70,000 (at a minimum)
• Pre-approved by broker Tom for a mortgage with a 5-year term, a 2.25% rate, and a 25 -year amortization

1. Mary needs to decide how much of a down payment to make and how much to borrow.

Should she keep some of her investments and just do the minimum of 20% down of $70,000 for a conventional mortgage? Or, should she have a smaller mortgage with a down-payment greater than 20%?

Please provide the amount she should put down and the amount she should borrow. Explain clearly why you selected these amounts and your rationale.

2. How much from each account should Mary use for the down-payment? Provide clear reasoning why you selected these amounts. Hint: HBP?